Commercial Mortgages and development finance.

Commercial Mortgages

Commercial mortgages secured commercial lending on business and trade property used for business purposes in retail, commercial industrial, office, agricultural land and buildings etc. Where the business property also comprises an element of residential dwelling e.g for owners living accommodation or holiday letting accommodation, this will constitute as semi commercial. Semi-commercial property mortgages are usually outside the lending criteria of residential mortgage lenders and so a semi commercial mortgage from a commercial mortgage lender with an understanding of business property markets will be able to construct a lend loan advance to the borrower. Commercial finance borrowing falls largely into two sectors, Investment commercial property and Owner-occupier commercial property. With investment commercial lending the property is rented to another business on a long lease contract. Rental Income from this lease contract  must therefore be sufficient to service the borrowing monthly payments. Lenders will consider the strength of the tenant to whom the property shall be leased. A blue-chip high street brand named shop or retail outlet would offer the lender better security than a private or start up business renting the premises.  Owner occupier commercial property are owned and occupied by the business operating from the property. Commercial lenders looking to advance a loan on an owner occupied basis would need proven track record on the business activities, applicants background to satisfy lending criteria for the business generated net operational profits could support the monthly repayment of the loan.  For new businesses purchasing a property a larger deposit and self-certification of income on projected turnover and profits may be required in order to qualify the loan.

Development Finance. 

For experienced developers looking to finance the purchase of land or buildings for redevelopment into new housing or developments of flats and apartments. Development Finance and property build Funding can be arranged up to 100% of the purchase price of the land or building and full development costs to construct or convert the property into the finished product for sale on the open market. Development funding is most suitable for builders and developers with some proven track record of developing properties converting old building into new flats for resale, or developing new homes on land. Development finance is secured against the strength of the proposed application, planning approval, architects approved drawing & plans of the finished development. A Quantity surveyors involvement in the project 

Residential Bridging Finance.

Where there is a need for quick short term borrowing bridging loans (open bridging) secured against a property can bridge the gap between house purchases or where funding from a term mortgage has yet to be agreed. A bridging loan can plug the funding gap for a few months while a property is either sold or refinanced. Other instances of where bridge loans could be used is where a property that is not suitable for mortgages purposes i.e. a property with structural problems or planning issues which a conventional term mortgage lender could not accept as security.  Bridging Finance lenders are efficient and very flexible in what property can be accepted as security for the first legal charge. Where there is a market value on the given property or land asset the loan may be secured against it and money advanced to the borrower for almost any given legal purpose.  In recent years bridging has become an invaluable tool for securing purchase of property at below market value before remortgaging to a BTL lender to construct a no money down property deal.

Commercial Bridging Loans

Often in commercial property acquisitions a commercial bridging finance deal is a constructive financial tool to fund property or land transactions borrowing against the open market value rather than the purchase price. This enables the borrower to finance higher loan to values on the purchase than a conventional or high street commercial term mortgage would allow. Commercial Bridging Finance may also be non-status and self cert therefore a business property could be purchased quickly without provisions of business accounts, trade history, or financial history. Commercial Bridging would also be utilised for raising capital quickly. Short term finance can be raised against business premises, commercial buildings, industrial buildings etc. Considering the opportunity cost in missing a important trade deal or property transaction, a bridging loan can be arranged in just a few days and without too much attention to the companies trading activities or banking status.

Commercial mortgages Bridging finance and Development finance