What is a commercial mortgage?
A commercial mortgage refers to any loan secured against a property that is not a single residential property.
We may be able to find a deal that will fund up to 100% of a property depending on your business and the property usage.
Lending is often available on an interest only basis to keep repayments down while building a business or considering income.
A commercial mortgage is likely to be granted based on trading figures or rental profit rather than personal income.
Who can get a commercial mortgage?
We handle commercial mortgages for:
- Retail & Office Units
- Hot Food / Takeaway
- Industrial / Warehouse
- Multi-Unit Blocks (apartments or houses under one title)
- Freehold & Leasehold Properties
- Flats Above Commercial
- Holiday Homes (Airbnb / Caravan Parks)
- Office buildings or units
- Healthcare / Doctors / Dentist
- Hospitality Venues (inc bars and hotels)
- Care Homes / Surgeries / Childcare
- Petrol Stations / Garages / MOT & Tyre Centres
- Limited Companies
- Sole Traders
- Charities
Plus much more!
What are the benefits of a commercial mortgage?
- The interest on your commercial mortgage can be tax-deductible
- Stamp Duty can be less on a commercial property
- You could pass on repair and maintenance liabilities to a tenant
- If the property increases in value, your capital may also increase
- Tax Advantages when including within your pension scheme
What do I need to apply?
You will need bank statements and trading figures that reflect the last 6 months. Also, you’ll need a passport or driving licence to prove your ID and address.
You may also need to provide a business plan to show your financial projections for the year ahead. This can help determine when you’ll be able to repay the loan.
How much will it cost?
Usually, your deposit will need to be around 30% of the property’s value. However, there are also arrangement fees, valuation fees and legal fees to consider.
If you need further guidance or a more extensive breakdown, please arrange a call with one of our commercial finance experts.
Lendese Commercial Limited is an appointed Representative of Commercial Finance Brokers UK Limited which are authorised and regulated by the Financial Conduct Authority.
