Buying the freehold gives you more freedom to use the premises how you wish that is subject to planning restraints, any loan restrictions and any listed building, conservation and covenant restraints.

It’s yours, so you can alter, develop or extend the premises, as your business needs grow or change.

If the commercial property market is kind to you you may see capital appreciation, which could be good if you wish to borrow against the premises to expand the business at a later time.

You can let all or part of the property at a future point and receive additional income – subject to any lenders approval.

The fact that you own the building means that you are not tied to a lease.

Try before you buy. If you are venturing into a new business it might be worth renting for a while to see how things go, buying premises can be very expensive and you may not wish to be there in 6-12 months.

You are more tied to the property if you buy rather than a rental/leased premises.

Funds are required for purchase, at least in the instance of commercial heavy deposits (as commercial is seen as more riskier than residential property.

In the event that properties in your area become blighted, or the market falls then for the privilege of finding the mortgage repayments you could also fall into negative equity.

Your capital could be tied up in premises instead of being used to grow your business.

Using funds to purchase your premises could put a strain on your cash flow

The property may become expensive to maintain, using up valuable cash.

The building is your responsibility for and it is up to you to comply with the structures current legislation as to fire and health and safety, (thats in addition to other legislation required day to day running your business whether the premises is owned or not).

Many commercial properties (unless new) may have hidden defects from past poor maintenance, plus building repairs can interfere with income for neighboring businesses, ie digging up the drains could restrict yours and a neighbors access which could be costly on the pocket.