What can a commercial mortgage be used for?
As the name implies, a commercial mortgage can be used to purchase or refinance just about any type of non-residential property. Commercial mortgages are specialised as the lender has a legal claim over the property until the commercial loan has been paid off in full.
What are the advantages of a commercial mortgage?
There are many benefits to buying commercial property using a commercial mortgage. The commercial mortgage payment is likely to be the same as the cost of renting the property, and you have the added financial bonus that you will eventually own the property. Also, if you rent a property then you are subject to rent increases which can harm your business. The interest payments on a commercial mortgage are tax deductible, which may help you to reduce your overall tax burden each year. If you have a large amount of commercial property then any unused areas could be sub-let to other companies, although this usually requires the permission of the lender.
Do you offer 100% commercial mortgages?
We will normally consider funding up to 85% of the value of the property and can, in certain circumstances, exceed this.
What kind of mortgage do I need if I want to buy a commercial property with a residential property attached?
With effect from 1st November, the FSA have decided that where the residential accommodation accounts for 40% or more of the property, then the latest residential mortgage regulations will apply. A solution could be to create a separate Leasehold Title for the residential property. This will split the property into two bits: one leasehold residential property, and one freehold commercial property. You can then apply for a residential and a commercial mortgage for the respective properties.
Can I still get a commercial mortgage if I have a bad personal credit rating?
Yes, at Michael Alexander we can still help you if you have a bad personal credit rating or have no proof of income.
Is the process of buying commercial property the same as for residential property?
Yes, except for the usually higher sums of money involved in a commercial transaction, the process is essentially the same.
What are the advantages of using Michael Alexander over my bank to get a commercial mortgage?
As specialist commercial mortgage brokers we have access to a wide range of lenders and can offer you a package that will be tailored to your exact needs and one which will often beat your bank.
How do I apply for a commercial mortgage with Michael Alexander?
If you are interested in the services we offer just fill in our online enquiry form or call us now on 0845 2 605 506.
