Commercial Investment mortgages
Commercial Investment Mortgages
Are you considering a strategic move to secure or refinance commercial property for your business? UK Commercial and Development Finance is your partner in success, offering meticulously crafted commercial investment mortgages tailored to your needs.
Navigating the Essentials
Capital Infusion : Are you seeking funds for property purchase or refinancing? Our tailored financial solution can make it happen.
Loan-to-Value : Your typical loan to value for this type of commercial mortgage is up to 75% of the open market value. Speak with our specialist finance adviser to discuss potentially higher loan to values depending on the business sector and/or your portfolio.
Flexible Terms : Choose repayment terms from 5 to 25 years, with shorter interest-only options available for your convenience.
Interest Rates : Commercial investment mortgage rates depend on the property type, tenant type and the strength of the covenant (aka Tenancy agreement). At the time of writing rates will start from 6.8% and rising.
Cost Breakdown : Anticipate 2% to 3% lender fees, along with application/administration, valuation, and legal fees.
Key Considerations
Strategic Property Moves : Consider the purpose behind your property acquisition – a cost-effective alternative to renting or aligning with future business needs?
Financial Planning : Explore property acquisition within SSAS or SIPP and evaluate the impact of personal/director guarantees.
Rates & Fees
Cost Analysis : Understand the nuanced financial landscape of commercial funding, including higher rates and fees compared to residential lending.
Financial Preparedness : Factor in substantial fees, ensuring a robust cash flow and business safety net when venturing into commercial property ownership.
Borrowing Limits
Business Viability Assessment : Lenders assess the rental yield generated by the property in question to be used as security for lending. They may also review your businesses EBITDA to see if there is any income collateral to support the investment mortgage requirements.
Embark on the journey of commercial investment mortgages with strategic thinking. At UK Commercial and Development Finance, we pave the way for your business success. Unlock the full potential of your business with our tailored financial solutions.
Key Takeaways
- Loan-to-Value: Typical maximum of 75% with some sectors allowing up to 100% LTV.
- Repayment Terms: 5 to 25 years, including 10 to 15 years interest-only.
- Lending Rates: Start from 6.8%, dependent on property details and tenant type.
- Lender Fees: Typically 2% to 3% of the loan advance.
- Additional Fees: Include application, valuation, and legal fees.
- Financial Assessment: The rental yield generated by the property and the strength of the tenant and covenant (The tenancy agreement)
- Strategic Property Moves: Cost-effective alternative to renting or aligning with future business needs.
- Financial Planning: Explore property acquisition within SSAS or SIPP, or maybe within a ‘Holding’ Company.
- Personal Guarantees: Evaluate the impact on personal assets.
We get to know you and your needs and provide you with professional advice bespoke to your needs. No fuss, no nonsense, just 20+ years of experience.
Our advisers are qualified and trained in many areas of specialist property finance. Speak with them today to find out more about your project.
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We would love to hear from you and to discuss your enquiry. For a free introductory call to discuss your needs, call us 0117 251 0563 and ask for Ryan or Luke.