Commercial Property Finance in Essex

When you purchase or develop a commercial property in Essex, it can sometimes be more expensive than your working capital can handle. When this happens, you may need to raise commercial property finance to cover it. 

Commercial Mortgages in Essex

Commercial mortgages are used by businesses and sole traders to finance the purchase of a property that will be used solely for business purposes (this includes property attached to a clinic that can be rented out). They are essentially the same as residential mortgages, the main difference being the intended purpose of the property – whether it be business or residential. 

Although you may find it easier or even cheaper to rent a property, taking out a residential mortgage allows you to cover the rent whilst also affording you the opportunity for your business to own a valuable asset outright at the end of the payment schedule. An asset you may be able to sell on for a decent profit. 

Although the terms and conditions will vary from business to business and lender to lender, you may be able to finance 100% of the purchase. 

Click here to read more about commercial property mortgages.

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Auction Finance in Essex

When you purchase a property at an auction, payment is usually expected within 28 days, which is quicker than most businesses can raise finance on their own. Luckily, there are commercial finance lenders in Essex who specialise in auction finance. You will be able to raise and pay the mortgage far quicker by using auction finance.

However, the interest rates will be much higher. This is because the loan terms are far shorter, affording the lender less time to make profit on the interest payments. It is common for business owners who use auction finance to remortgage onto a commercial mortgage eventually. 

Bridging Finance in Essex

Bridging finance covers short-term costs relating to building and development and is used when your working capital cannot meet the price. Usually, this type of property finance runs for 3-24 months with interest charged on a monthly basis.

Bridging finance is often used to cover the funding gap where a property has been purchased and the mortgage is not in place.

Click here to read more about bridging finance.

Development Finance in Essex

Development finance covers both land purchase and building costs. A lender will look to finance a percentage of the land purchase and the building costs. 

The Gross Development Value (GDV) will show the return on the project at the end of the development, whether it is a refurbishment of an existing property or a full build of a property from an empty piece of land. Lenders are repaid from the first properties sold.

You need to assess your project as to costs, land purchase/build costs/sale costs in best and worst scenarios. You then need to find the right finance to take the project forward at the outset.

Click here to learn more about development finance.


If you’re looking for help with commercial mortgages in Essex, then get in touch with us today or book a free consultation today. Our team can make sure you get the best deal. 

For more information on raising finance for your healthcare business, check out the articles and webinars in our Learning Centre, like our guide on How to Finance a Dental Practice.

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