Commercial mortgages
A commercial mortgage loan is a popular way to finance the purchase of business premises; it provides the most flexible and affordable finance solution. A commercial mortgage is a long-term commitment that is usually repaid over 15 years or more. Commercial mortgages are specialised due to the fact that the lender has a legal claim over the property until the loan has been repaid in full.
Any business can raise finance through a commercial mortgage: self-employed; sole traders; limited companies; or partnerships, and most business property can be financed with such a loan. These can include offices, factories, shops, restaurants, guesthouses, pubs or even land.
Lenders will usually advance up to 75% of the value of the property against which the commercial mortgage loan is secured but may be willing to offer more. You will probably need to find a deposit of at least 20% of the total purchase amount. Each case is treated on an individual basis and larger loans may be granted to businesses in certain “hot” sectors.
A cash advance can be used to buy, improve or extend property, as well as to clear debts or to refinance or expand your business. The lender will be concerned only with your ability to repay the loan and the value of the property secured against it.
The Financial Services Authority does not regulate commercial mortgages.
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