Whether your business is developing and growing a commercial property portfolio, investing for the future, investing for a rental income or just using your pension to help acquire your business premises we can help.

Lenders look at commercial investment properties on the basis of the rental income they generate, because that after all is the source of any income that will repay the loan.

Lenders are looking for a reasonable term remaining on the lease, and a quality tenant so that they know your income can be more assured. Rarely will they look to fund against a property that isn't let or at least head of terms agreed on a future tenancy.

In the present climate borrowing is usually up to 75% of the current market value and terms of 25 - 30 years are still fairly rare with lenders, as much as possible trying to match the mortgage term to the assured income remaining on the lease, this of course is not always possible but with shorter leases they will want a strong indication from their valuers that the rent level can be sustained and in the case of a tenancy finishing, demand is such that a new tenant could be found relatively easily.

Commercial investment mortgages are predominately on a capital and interest repayment basis but some lenders will allow a portion of the loan or a period of time during which they will accept interest only repayments. They often assess serviceability however assuming full amortisation of the capital element over the term, or by basing their calculations on a 'Stressed Rate' which allows for the inevitable increase in rates that will follow in time.

Any property held as an investment can be considered but lenders have differing approaches to certain sectors. Some for example will finance, pubs, guest house and hotels, others won't, some will finance the care sector others won't. Most lenders are very receptive to funding Self Invested Personal Pension Schemes so that if you are looking for a tax efficient way to fund your commercial trading premises do give us a call.

Contact us and we can look at the mechanics of the deal, answer your questions and give you an initial assessment as to how much can be funded and then it becomes relatively easy for you to find the right sort of asset to invest in.