PRIVATE FINANCE FOR
Commercial
Investing in commercial property offers many benefits.
Investing in commercial property offers many benefits.
We handle over £300 millions of real estate enquiries every month, from
castles in France, to private islands to mansions in the UK. Give us a call today
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Years of Experience
Making the impossible possible is how we have created many solutions for private clients. Financing a luxury real estate can be complicated but we can make this process as simple as possible.
Discovering Commercial Mortgages
Navigating the intricacies of commercial mortgages can be daunting, especially in today’s economic climate. Finding high street lenders willing to cater to commercial mortgage needs can be challenging. However, as seasoned commercial mortgage advisers, we bridge this gap by connecting you with private banks and commercial lenders. Our deep expertise in this specialised field allows us to negotiate flexible terms and underwriting criteria tailored to your investment objectives, whether domestic or international.
Types of Commercial Mortgages Available
- Commercial Buy-to-Let Mortgages: Perfect for acquiring properties to lease to other businesses or individuals.
- Residential Buy-to-Let Mortgages: Surprisingly, residential properties can also be financed with commercial mortgages, beneficial for landlords with substantial property portfolios.
- Owner-Occupied Mortgages: Specifically designed for businesses acquiring properties to operate their business premises.
Security for Commercial Mortgages
Lenders typically require assets as security, ensuring repayment security even in worst-case scenarios. Your security asset should ideally be at least 75% of the property’s purchase value. At Million Plus Private Finance, we meticulously review your financial position to present a compelling case to lenders, leveraging our expertise in navigating complex structures.
Benefits of Commercial Mortgages
Investing in commercial property offers several benefits:
Stable Income
Rental yields provide a consistent return on investment, supporting cash flow stability.
Control & Flexibility
Ownership allows for property maintenance control and flexibility in property use without lengthy leases.
Tax Deductibility
Interest on commercial mortgages is tax-deductible, providing significant cost savings over time.
Capital Growth
Property value appreciation can significantly increase your capital over the long term.
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Qualifying for Business Mortgages
To qualify for a business mortgage, demonstrating a stable trading history and financial health is crucial. Lenders typically assess income, assets, profit, and business credit records. Eligible entities include limited companies, limited liability partnerships, trusts, and offshore companies, often requiring two years of audited accounts for limited companies.
Deposits and Fees
Once deemed eligible, lenders generally require a deposit between 20% and 40% of the mortgage amount to secure the loan. Deposit requirements vary based on your business proposition and the type of commercial mortgage. Partnering with experienced mortgage advisers like us is essential to navigate these complexities.
Fees Involved in Obtaining a Mortgage
In addition to the mortgage loan, commercial finance involves several fees:
- Legal Fees: Higher than residential mortgages, legal fees cover complex commercial mortgage applications.
- Valuation Fees: Comprehensive property valuations for commercial properties are more detailed than residential ones.
- Arrangement Fees: Charged for loan administration and fund reservation, typically a fixed percentage of the loan amount.
- Mortgage Adviser Fees: Typically, up to 1% of the loan amount, mortgage advisers negotiate on your behalf for the best terms.
Duration of Commercial Mortgages
Commercial mortgage terms typically range from 3 to 30 years. Longer loan periods mean more monthly instalments, influencing total interest costs.
Lending for Commercial Property
Banks typically start commercial mortgage loans at £150,000 with no maximum limit, provided eligibility and security requirements are met.
Commercial Remortgaging
Remortgaging allows negotiating new terms or releasing funds from existing commercial mortgages. Lower loan-to-value ratios from paying off a significant portion of your loan can lead to better rates, ideal for property investments.
Financing Commercial Real Estate Internationally
UK commercial mortgages are accessible to overseas investors, leveraging the country’s stable government and regulated economy. Global banks and insurers show robust lending appetite for international clients investing in UK commercial properties. Our office collaborates with international banks, offering tailored financing solutions for loans starting at £1 million. We facilitate transparent financial assessments and offer foreign exchange services for overseas transactions.
Why Choose Million Plus Private Finance?
- Expert Negotiation: We excel in negotiating optimal mortgage terms with diverse lenders and private banks.
- NACFB Membership
- Tailored Solutions: We craft creative financing solutions for sophisticated financial profiles, ensuring comprehensive support from start to finish.
- Global Reach: With experience in multiple jurisdictions, we offer flexible solutions for international clients navigating complex property finance needs.
- Transparency: We prioritize client discretion and seek approval before engaging third parties, ensuring confidentiality throughout the process.
- Market Insights: Our team provides regular updates on UK property and mortgage markets, equipping clients with informed investment decisions
Partner with Million Plus Private Finance for expert guidance on commercial mortgages tailored to your business needs. Contact us today to explore how we can support your commercial property investments.
Million Plus Private Finance
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt. The Financial Conduct Authority does not regulate finance, foreign currency mortgages, bridging finance, secured loans, and some aspects of commercial mortgages. You may have to pay an early repayment charge to your existing lender if you re-mortgage.
By listing with us, you adhere to our Terms & Conditions – PLEASE READ BEFORE LISTING
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Million Plus.com Limited refers all finance enquiries to Million Plus Private Finance Limited, FCA number 1006539 is an appointed representative of TMG Direct Limited which is authorised and regulated by the Financial Conduct Authority under Firm Reference No:786245 and registered with the Data Protection Act 1988 Registration No: ZA178200.
Million Plus.com Limited is registered in England and Wales No: 07135407. Million Plus Private Finance Limited is registered in England and Wales No: 08503362. Registered Address: Azets Burnham Yard, Beaconsfield, Bucks, United Kingdon, HP9 2JH.
