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Commercial

Commercial Mortgages

If you are seeking to finance the purchase of land and/or buildings for your business, a commercial mortgage will probably provide the most flexible and affordable financing solution. A commercial mortgage is a specialised commercial loan, and as such, the lender has a legal claim over the property until the loan has been fully repaid.

As with a residential mortgage, the commercial lender can hold the title deeds to the property as security. In the event of arrears the mortgage lender can repossess the commercial property.

A business owner who wants to fund his/her premises may use an 'owner occupied' Commercial Mortgage.

A Landlord can 'buy to let commercial' that is to say the landlord can purchase a commercial property solely for investment purposes and rely on the rental income to cover the mortgage and provide a profit.

Buying Commercial Premises - Advantages & Disadvantages

Buying commercial premises can be a good investment but before you commit, it is important to consider carefully the pros and cons. The acquisition of a property adds stability to your business and the property itself can become a significant asset, so let's look at the upsides and the downsides to buying:

ADVANTAGES:

  1. A fixed rate mortgage means you will have predictable monthly repayments
  2. The repayments are likely to be similar to a rental payment on the same property
  3. You are protected from any sudden rent increases
  4. Interest payments on the commercial mortgage are tax-deductible
  5. Possibility to sub-let any free space, reducing your monthly repayments (lenders permission may be required)
  6. Potential gain in value of the property

DISADVANTAGES:

  1. Substantial deposit will be required - would this money be better allocated to more important business purposes?
  2. Selling business premises can be difficult. What if you want to re-locate?
  3. If you have a variable rate mortgage, you are exposed to increases in interest rates.
  4. Ownership means you'll be responsible for ongoing costs such as security, maintenance, fixtures and fittings, insurance, repairs & renewals.
  5. Potential reduction in value of the property

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE COMMERCIAL MORTGAGES.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR PROPERTY. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.


Mortgage Enquiry
Mortgage Calc

172 Commercial Rd
ALDGATE
London E1 2JY
t. 020 7790 4445
f. 020 7790 2575
124 Stepney Way
STEPNEY
London E1 3BG
t. 020 7702 8999
f. 020 7702 8777
Affiliates
Park View Estate
Clear View
Clear View Claims

Company Registration Details

Calingford Ltd

Registration N0: 07667288
Registered Office: 172 Commercial Road, Aldgate, London, England, E1 2JY
Xpresslink Properties is a trading style of Calingford Ltd