Arranging a Commercial Mortgage to purchase anything from a water tower to an ostrich farm can to the average client seem a very daunting task. A Commercial Mortgage and the rate of interest and terms that you are likely to incur will be influenced in the main by the following factors.
- Your personal credit history and that of your business or company.
- The amount of deposit that you have available or other acceptable security that the lender will accept.
- The size of the loan (banks love large loans).
- The type of security offered and the historical risks associated with running this type of business.
- How the business has traded in the past and if you have accounts to back this up.
- How much experience you may have in running the type of business you wish to purchase, and your understanding of all of the peculiarities of this type of business.
- Your presentation of a business plan, and in depth CV, and cash flow forecast can work wonders with some lenders.
- Whether the security offered is freehold or leasehold.
You may read this and think I am wasting my time, but quite the opposite is true. There are very few propositions that we have to turn down flat if people have done all of their homework.
Yes in an ideal world you would have lots of experience in your chosen industry, there would be a deposit of at 25%, the security would be a freehold property and there would be 3 years trading accounts showing a healthy profit.
However as we are all aware the purchase of a business or freehold premises is not always as straight forward as we would like and there are sometimes many hurdles that we have to overcome before we can purchase our chosen business.
The good news is that by going to an Independent Financial Adviser with the whole of the Commercial Market at their disposal we can still arrange a Commercial Mortgage for you up to 85% loan to value. If you have other acceptable security available we can go as high as 100%.
We can accept bad or adverse credit and you in the absence of accounts can self certify your income. We can also look up start-ups or limited periods of trading.
There are of course some propositions that lenders would prefer to stay away from and most avoid leasehold premises unless it is very low loan to value or the borrower can offer some alternative attractive security.
You should always make sure that you employ a Solicitor who fully understands Commercial Properties and the onus is on you to make sure that the Commercial Premises are structurally sound. A local chartered or building surveyor should be employed to survey the property prior to exchange of contracts or entering into any binding arrangement with a vendor. You should also be aware that when purchasing a Commercial Property with particular regard to leasehold premises you may be responsible for the vendors legal costs. You should always seek clarification on this point and if you are responsible you should set a ceiling with your Solicitor in order that you are not handing your vendor an open signed cheque.
If you want to know how we can help you today please call us on 0845 2 605 506, complete a call back request or complete our enquiry form.
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Commercial Tool Suite
Ok we have been working very hard on our new commercial mortgage tools from the basic calculator to the advanced property price predictor tool. Our new property tool suite is finally finished and ready for you to download and trial, featuring a mortgage calculator, property price predictor, home paint pad, map getter and more.
Size: 11.3mb
OS: 98/ME/XP/NT/2000
Type: ZIP (Exe setup)
If you like our software and want to leave a comment then visit our commercial mortgage blog. We continue to develop new commercial mortgage tools.
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Looking for a commercial mortgage? then you've come to the right place, our team of commercial investment mortgage brokers can help you finance your lending needs for commercial properties. With us you can be sure that we can arrange the most appropriate commercial property mortgage for your needs.
Mortgages Up to 85% LTV Without proof of income
A flexible approach to your lending requirements
CCJs and credit defaults accepted
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Featured in The-Mortgage-Hub ã 2006
Site Last Updated: Thursday 7th Aug 2008
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Commercial Mortgages and Professional Mortgage Advice from Michael J Alexander Group
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Here at a commercial mortgage 4 you we take great pride in our commercial mortgage website, which is why we are constantly working harder to improve.
We now offer agricultural, rural and farm mortgages.
Commercial Mortgage Types
Commercial Fixed Rate:
Features a set interest rate over a fixed period of time. Once this period has ended the normal variable rate is paid. Arrangement fees are normal when taking this type of commercial mortgage.
Commercial Variable Interest Rate:
The variable interest rate is an interest rate that mirrors and changes to the Bank of England's Base Rate. The current market rate and a set premium that remains uncharged throughout the commercial mortgage constitute the interest rate for each period. Remember that you can initially get a lower interest rate on variable interest rate than on a fixed rate mortgage.
