Commercial mortgages
For many businesses, regardless of size, one of the biggest decisions to be made is whether to buy or lease commercial property.
There are many advantages in buying commercial property over leasing, although there is often far more commercial property available for lease than sale. Once you have found a suitable property, with the appropriate permissions for your business use, it is worth getting some quotes as there are many competitive commercial mortgages available today, and repayments could well be similar to monthly rental costs, possibly cheaper.
A commercial mortgage is probably the best way to finance the purchase of buildings and land for business purposes as it provides the most flexible and affordable finance solution.
It is worth noting that due to the specialised nature of commercial mortgages, the lender has a legal claim over the property until the loan has been repaid in full. Your mortgage would be tailored for your needs whether for purchasing commercial property or for taking over an existing business, purchasing a brand new building or buying land.
At Samuels Financial we can help you to find the most appropriate commercial mortgage for your individual circumstances. Each lender will have their own lending criteria, but most will be looking for a positive credit rating and will expect an existing business to be stable and profitable.
Typically, most providers will lend upto 70% - 80% of the purchase price of the property but it may be possible to secure additional funds with personal guarantees. This means that the borrower has to raise a significant deposit at the outset. Most commercial mortgages are for a term of 15 years or more.
If you would like specific advice about whether property ownership and a commercial mortgage are the best options to suit your business, please talk to one of our experts.
