If you are looking to purchase a shop either as an Investment or as some where to live and run your business you have come to the right place. We have over 40 years of experience in Financial Services and have built up a wealth of knowledge in this field. We would normally look to arrange finance for up to 85% loan to value as a maximum, with most of the more recognised lenders looking at 75%.
We can arrange mortgages where clients are unable to prove their income or where the accounts do not show the actual true potential of the business. These loans are available again up to 85% loan to value, but as you would expect you will be paying a slightly higher rate of interest on the mortgage. When clients are in a stronger position we can then arrange a mortgage with a better rate to take over the first mortgage.
Lenders will look more favourably towards shops with living accommodation as you have the advantage of living over the premises and saving expenses, or renting out the living accommodation and enjoying the rental income. With lock up shops most lenders will consider a slightly lower loan to value but this of course depends on the whole of the package that we are able to put forward.
Investors should be aware that where the living accommodation is in excess of 40% of the total area, residential mortgage regulation will apply which does make life a little more difficult when trying to arrange finance. This is rare, but you should ask the Estate Agent if the proposition is likely to fall into the area of a regulated mortgage.
One possible solution would be to create a separate Leasehold Title for the flat. This will split the property into two parts which would allow a residential mortgage for the flat and a commercial mortgage for the shop. It would certainly make the purchase a more drawn out process and would increase your expenses, but it can be done. Clients should also make sure that they get a break down of the purchase price as this may be a mixture of, bricks and mortar, goodwill and stock at valuation. There are tax implications to the break down of the purchase price and clients should ask for this information up front.
If you are looking to finance a commercial property then fill out our application form.
Browse through our articles and resources section to find more commercial mortgage information.
We also assist with asset finance and investment property solutions.
Ask an adviser about your commercial mortgage enquiries.
If you have adverse credit we can help
Tips on finding the broker for you
Help for declined applicants
Your complete guide to commercial mortgages
How commercial mortgages fit your business
Got bad credit? Its ok we can help
Our daily blog of financial information
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.
Part of the Michael J Alexander Group
Site Updates: Thursday 7th Aug 2008
Featured in The-Mortgage-Hub ã 2006
Site Last Updated: Thursday 7th Aug 2008
Ó www.acommercialmortgage4you.co.uk - Specialists in commercial mortgages and commercial finance
Commercial Mortgages and Professional Mortgage Advice from Michael J Alexander Group
If you are looking to finance a shop then you have come to the right place. We can help arrange a commercial mortgage for you. A Shop can be a great investment property as well as a source of income. So give us a call today to speak to one of our advisers else fill out our commercial mortgage request call back form for one of our advisers to call you today.
