Property Investment not recommended?

[ishfaqsangra]

guidance says (page 54)

"We define property development as any development of property (real estate) owned by the
applicant or his business to increase the value of this property with a view to earning a return
either through rent or a future sale, or both.
We define property management as the management of property (regardless of who owns it -
whether or not it is owned by the applicant or his business) for the purposes of renting it out or
for resale."

Does this mean services business should definitely not think of commercial mortgage?

[Olasunkanmi]

@ ishfaqsangra, development of property (real estate) owned by an individual or a business is different from a commercial mortgage specifically taken for the purpose of using as your business premises. Example, you can decide to buy a property say for £30,000 and then use the remaining £20,000 to buy equipment for your business. In as much as there is evidence to show that your business uses the property for trading only and nothing else, then in my opinion you should be fine.

The only issue here is that if your plan show that you simply intend to buy the property for the purpose of keeping and reselling in the near future then this might be very complicated during extension.

HO will have to determine which category the property fall into and they can only do this by the information and evidence you provide them.

[ishfaqsangra]

Thanks Ola for your valuable input.
This is certainly confusing as any business (even if they are using the property for trading purposes at the time of extension) can sell the property later on.
They might question why it was more important to buy property rather than investing in marketing your business (being a Consultancy Services) as they are saying investment in a sense to increase competitiveness.