Commercial Mortgages
Commercial mortgages are specifically for individuals or companies who wish to acquire premises for their business or investment.
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Commercial Mortgage Experts
Unique Property Finance are specialist commercial mortgage brokers and have access to exclusive products from across the commercial lending market.
Commercial Mortgages can be considered as a fairly complex type of loan and although the high street is where most business owners search for their lending, you should actively consider using the services of an impartial, specialist commercial mortgage broker that covers the whole market.
A broker will search the most appropriate deal according to your business sector and try and tender the best rate available. Also, a high street lender would use similar loan to value ratios as residential loans when lending but these can differ depending on the individual banks’ lending criteria and appetite for the business type.
The two main factors that lenders look at are serviceability and security. The first would be the operation of the business and personal credit conduct and the latter would be obtained by a professional survey of the security property.
Property Acquisition
A Commercial Mortgage is a viable option when a business intends to purchase property for its operations or as an investment. This could involve acquiring office space, a warehouse, or land for development.
Refinancing Your Exiting Loans
Businesses might consider commercial mortgages to refinance existing loans. This could be to secure better terms, lower interest rates, or consolidate debts.
Expansion or Renovation of Property
Commercial Mortgages can provide the funding if a business wants to expand its facilities or renovate existing properties to accommodate growth. For example adding an extension to your property.
The Financing of Development Construction
Funding construction projects for new buildings or renovating existing ones can be achieved through commercial mortgages, as they often offer longer terms and specific financing for construction needs.
How to Apply For A Commercial Mortgage?
Most lenders will request a lot of commercial information on the performance of the business and it is worth preparing this from the start in order to help your application run smoothly. This will help to secure the property so you are ready to go ahead quickly with your purchase, getting your offer ahead of other potential buyers. Documents typically requested are:
- Audited accounts for the last three years
- A profit and loss forecast for the next few years
- Current business performance or a CV of the business
- The personal details of the key owners/shareholders in the business for credit-checking
- Asset and liability or income and expenditure statements for each applicant
A business plan detailing how the property will contribute to your cash flow and how you plan on repaying the loan.
The main concerns of any lender would start with your personal standing and creditworthiness. This will then be followed by whether you can afford to pay back the loan and should you default, whether the property is worth enough to cover the value of the loan. Business owners should seek advice from trusted brokers that will not only give them the right lender and package, but also continue to support them through their business lifespan.
If you have any questions or would like to discuss the initial steps please contact our experienced brokers on 0203 645 4322.
Speak to A Commercial Mortgage Broker
Unit 3, Mountview Court,
310 Friern Barnet Lane,
London N20 0LD
E: info@unique-finance.co.uk
P: 020 3645 4322
Give us a call or send an email to book an appointment. We endeavour to answer all enquiries within 24 hours on business days.
We are open from 9:30 am — 6:30 pm Monday - Thursday & 9:30 am — 5:00 pm Friday.