Commercial properties can include the following:
Properties will be let out to an unrelated business under a commercial lease, usually on a fully repairing and insuring basis.
Mortgages can be for a single property, or a portfolio.
Mortgages are available for refinancing or for purchasing new properties. When refinancing, we can consider Equity Release.
Affordability and repayment
Affordability is based on rental income. The length of the lease(s) and tenant quality is also an important factor in determining what loan structure is available.
Ownership Structures
Acceptable customer types include: Sole Trader, Partnership, Limited Company (Ltd) or Limited Liability Partnership (LLP).
Loan terms and lending criteria
Loans are capped at 75% loan to value (LTV), however many lenders will only go to 60% or 65% depending on the type of property. Interest only repayment structures are common, however capital repayment terms are also available.
Pricing and fees
Pricing of these facilities can vary greatly, and it is often linked to the combined loan to value (LTV) and credit quality of the linked individuals. Fixed and variable rates are available. Arrangement fees are in the range of 1-5% of the loan amount which can be added to the facility.
