Whether it’s your first company premises, an additional site, or even just an expansion of your current location, it’s almost certain that you will require a mortgage to support your purchase. Through the services provided by Edge Mortgages, understanding exactly how commercial mortgages work and finding the best solution for you is now easier than ever.
There’s a number of commercial mortgage types available, depending on your requirements. These are:
Owner occupied: For when you will be using the property as the trading premises for your business
Residential buy-to-let:For when you’re building a portfolio of properties to rent out for residential purposes
Commercial buy-to-let: For when you’re investing in a commercial property to lease to other businesses – as in a shared office complex
The duration for a commercial agreement can run from three to 25 years. While the interest rates on commercial mortgages will often be greater than those found on residential properties, they still offer better value for money than more conventional business loans.
Understanding the challenges presented in securing a commercial property mortgage requires working alongside a team of experts that will provide answers to any issues you may have. At Edge Mortgages, we can provide you with everything you need to make a considered decision, helping complete all the necessary documentation to support the success of your application. Get in touch with a member of the team today to learn more and to discuss your needs.
Commercial mortgages are not unlike those used for residential purposes but, as the name suggests, they are for professional use. This may be a workshop, retail outlet, office building or garage – whatever your organisation requires, there’s likely a premises to suit you. For a commercial mortgage to be secured, an application will go through a lending manager and be thoroughly assessed according to the risk levels presented. Those factors that will be taken into consideration include:
Business finances and trading figures for the last three years
Value of assets and cashflow
Level of deposit available (many mortgage providers offer only up to 75% of the total value)
Lease and tenancy agreements
Projected income of the business