Commercial Mortgages
A commercial mortgage is a loan which enables you to fund the purchase
of land and buildings for business or investment purposes. As with
any other mortgage the lender has a legal claim over the property until
the loan has fully been repaid.
As indicated above, commercial mortgage loans usually take one of
two forms: "owner occupier" - the borrower is purchasing
a business premises that eh intends to
trade from, and "investment" i.e. the borrower is purchasing
property to rent out.
To determine serviceability, the lender will use separate criteria
depending on whether the applicant is an owner-occupier or investor.
With the former, the strength of the business will be key, whereas
with the latter, rental income/demand and quality of the
tenant will be the important factor along with the pedigree of the
investor.
Opting to buy a business premises rather than renting can often have
cash-flow as well as long term capital gain advantages.
Unlike with the highly regulated domestic mortgage market, Banks often
choose not to publish commercial mortgage lending criteria while interest
rates and
terms are negotiable. Thus disparities can be significant dependent
on the applicant.
The value of a commercial mortgage broker within this field cannot
be overstated, due to the bespoke nature of every single commercial
mortgage transaction. As independent market leaders in this field we
know what your best requirements are and what we can achieve for you.
Thus we can make the most appropriate suggestions and then negotiate
the best rate with lenders. After your experience with us you will
be able to walk away knowing that this is the best deal you could possibly
have achieved for your commercial mortgage. Specialist Funding arrange structured finance for businesses within
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