Investment mortgages
Commercial investment mortgages are loans secured on commercial/mixed use premises, and are sought by investors wishing to profit from rental income and or capital appreciation in the medium to long term.
Even in these challenging times, this type of funding is available through a good number of reputable lenders.
Sectors include:
- Prime office commercial property, (including serviced), secondary or tertiary locations
- Mixed use property investment i.e. offices with flats above
- Retail commercial property investment, mixed use property i.e. shops with flats above
- Primary, secondary or tertiary locations.
- Industrial property investment, mixed use developments
Unlike Buy to Let investment mortgages, loans to purchase commercial/mixed use investment property are rarely “off the shelf”. Commercial lenders, consider, and therefore price each deal separately, taking into consideration a myriad of factors, including those which may affect cash-flow; such as the quality of the lease and those which affect security, such as location. Once you have thrown the personal covenant of the purchaser into the equation, one can see that “off the shelf”, just wouldn’t work.
Enhanced Wealth, make no apology for the fact that we may spend a little more time, fact finding upfront; than some other commercial mortgage brokers.
An example of getting it wrong could be questions relating to the lease. Notwithstanding recent political pressure for more flexibility in commercial leases, quite a few lenders still only accept leases which contain a clause allowing for upward only rent reviews (UORR).
Therefore, sending a case, with a lease which allows for a market rent review, upwards or downwards, to a lender that will only accept leases with U.O.R.R; well you get the drift!
We will always ask; because to not, could cost you money.
How much can I borrow?
We have successfully brokered cases from 100K to 5M, typically, 70- 80% loan to value dependent on the overall quality of proposal and debt serviceability based on rent.
What are the interest options?
Interest only, part and part, capital repayment or capital repayment with a couple of year’s repayment holiday; are all options. There are even a couple of lenders offering an “offset” facility. Interest can be rolled up for 12-24 months, depending on Loan To Value (LTV).
How long can I borrow for?
Loans of 25 years are quite common; exceptionally 30 years can be achieved.
To discuss your commercial investment loan requirement please call us on 0800 316 5756
Please note that the Financial Services Authority do not regulate commercial loans or commercial mortgages
