A Commercial Investment Mortgage is a loan secured on a property which has any usage other than Full Residential. An example could be a shop, a shop with a flat above, or a Holiday Let, with a usage restriction. Where use is mixed; part residential, part commercial, the term semi commercial mortgage is sometimes applied by lenders. Such mortgages are often sought by investors wishing to profit from rental income and or capital appreciation in the medium to long term.
Whilst harder to find in the current lending environment, this type of commercial funding is available through Brokers that have good relationships, with specialist lenders.
- Mixed use property investment i.e. Shops with flats above
- Multi Unit Holiday Let Property
- Multi Unit Holiday Let Property with Owner Occupation
- Ex Pat Commercial Investment
- Retail Property
Unlike Buy to Let Investment Mortgages, mortgages used to purchase commercial/mixed use investment property are generally bespoke in nature, being agreed on an individual basis. Commercial lenders consider and, therefore, price each deal separately, based on a myriad of factors, including security, perceived stability of the income stream and the CV of the borrower/s.
Enhanced Wealth Ltd make no apology for the fact that we may spend a little more time fact finding upfront than you might have expected.
How much can I borrow?
We have successfully brokered cases from 100K to 5M, typically 60- 70% loan to value, dependent on the overall quality of the proposal and debt serviceability based on rent. However, in some cases, where suitable additional security can be offered, cross collateralization can remove the need to put any cash into the deal
What are the interest options?
Interest only, part and part, capital repayment or capital repayment with a couple of years’ repayment holiday; are all options. Interest can sometimes be rolled up for 12-24 months, depending on Loan To Value (LTV).
How long can I borrow for?
Loans of 20 years are quite common; exceptionally 25 years can be achieved.
To discuss your commercial investment loan requirement please call us on 0800 316 5756
Please note that the Financial Conduct Authority do not regulate commercial loans or commercial mortgages