What type of property can finance be raised money on?
Most traditional property types are acceptable to Banks and Funders. This could include offices, industrial units, restaurants, post offices and convenience stores, dental practices, doctor surgeries as well as many other specialist properties.
Is Investment property refinancing acceptable?
Yes, with the number of traditional Buy to Let lenders diminishing over the last few years there are still many Banks and specialist lenders who are happy with Investment and BTL properties. This can either be for purchase or remortgages.
Can property be purchased in a Ltd Company name?
There are many instances where property is now purchased in a Ltd Company name accompanied by Director Guarantees. The Ltd Company can be an existing business or a newly created company.
What is the maximum loan that can be achieved?
There is really no maximum loan advance that lenders impose. In general, if the proposition makes financial sense then a loan advance of many millions can be achieved. However please note that the level of deposit may increase for the larger loans.
Typically what type of deposit is required?
Currently a minimum of 25% deposit is required to fund purchase and remortgage commercial transactions. On certain instances this may be relaxed and 100% funding can be achieved if the customer can offer additional security.
I own a shop and a flat which I let out is that suitable security?
This type of deal is deemed to be a semi-commercial transaction and is dependent on the length of lease in place and the income derived from the AST’s. If a customer lives in the property and runs the business from the premises as well then this is OK providing the residential space does not exceed 40% of the total area.
What sort of fees will I have to pay?
Typically the lender will charge a completion fee of between 1.5% – 2.5% and Pure Funding Solutions Broker fee is typically 1% of the net advance. A commitment and assessment fee of £300 – £500 is payable upon formal application and this comes off the final broker fee. Please note that all transactions will attract a survey fee and legal costs.
I though Banks weren’t lending?
The perception has been that many lenders have pulled out and are not helping existing clients. The reality is that whilst mortgage lending has been restricted in the residential market, there is still a big appetite to fund deals in the Commercial and Short Term markets for the right type of deals and actually, there have been many new lenders opening their doors to help customers and SME’s.
What are the best rates in the market? There are some excellent rates on offer currently and rates have never been low. On a commercial purchase or remortgage rates can be as low as 2.65% over bank base rate (currently 0.5%). Rates are typically tracker led and variable but there are some fixed rates available with certain lenders.
Can I buy an existing property with a business? Absolutely, all lenders and banks are happy providing that the existing business is still trading and profitable and that the new buyers either have good experience to continue trading at a profit or create a lease and let out to new tenants on a long term.