Completing a commercial property investment involves intricate financial transactions, particularly through completion statements. In this guide, we’ll delve into the details of these statements, exploring the critical aspects you need to consider to ensure a smooth and secure investment process.

Understanding Completion Statements

Completion statements are pivotal documents that illustrate the monetary exchanges between the buyer and the seller in a commercial property transaction. Typically, two statements are involved, especially when lending is part of the equation. It is imperative to scrutinise these statements meticulously to avoid potential financial setbacks.

Statement from the Lender

The completion statement from the lender provides an overview of the loan amount, deducting legal costs, VAT, searches, registration fees, and administrative expenses. The resulting net loan represents the balance transferred to the solicitor. It’s crucial to verify these figures, ensuring accuracy and alignment with the terms agreed upon with the lender. Additionally, confirming that the net loan adequately covers the property’s purchase cost is essential to avoid any financial gaps.

Solicitor’s Completion Statement

The second completion statement comes from the solicitor, detailing the property’s purchase cost, associated fees, the loan amount, and any additional funds required. Complications may arise, especially when dealing with properties housing tenants. Apportionments of rent may appear on the statement, indicating whether the buyer owes or is owed rent by the seller. This complexity intensifies when dealing with tenants in arrears or when buying in the middle of a rent payment cycle.

Key Considerations and Tips

  1. Early Review of Completion Statements: To navigate these complexities effectively, obtaining the completion statement well in advance of the completion date is advised. This allows for a thorough review with the solicitor, ensuring accurate calculations and agreement on all terms.
  2. Tenant-Related Apportionments: When tenants are involved, particularly in the middle of a rent cycle, the completion statement may reflect apportionments. Understanding how rents are calculated and resolving discrepancies early on is crucial. This includes addressing arrears and determining whether the buyer or seller is responsible.
  3. Deposit Transfer: The transfer of deposits is a critical element in the completion statement. Buyers should confirm that the seller transfers the required deposits, ensuring the security of rental income. Proper communication with tenants post-completion is vital, introducing the new landlord and specifying deposit details.
  4. Clear Communication: When completing the purchase, effective communication with tenants is key. The new landlord should promptly inform tenants of the property’s sale, introduce themselves, and specify the amount of the transferred deposit. In cases where no deposit has been transferred, clear communication about the situation is essential.


Completing on a commercial property involves navigating through intricate financial documents, such as completion statements. Taking the time to thoroughly understand and review these statements ensures a secure and successful investment. By following the provided guide and considering the key tips, investors can mitigate risks and make informed decisions throughout the completion process.

P.S If you didn’t see our blog last week on ‘investing in commercial property at a discount’ then you can read it here. You could also listen to our podcast.