There are a few different solutions available to you if you’re thinking about taking out a commercial property mortgage in Kent.
Commercial Mortgages in Kent
A commercial mortgage works similarly to an ordinary residential mortgage, allowing you to purchase the premises for a clinic, surgery, office or warehouse etc, while spreading the cost over several years.
The greatest advantage in taking out a commercial mortgage to finance your business’s property is that you will own the property asset outright once the mortgage is paid. Instead of paying through the nose for rent, you’re paying for an asset you will own yourself.
In some cases, if you have a strong credit, a good trading record and added security for the loan, you may be able to obtain the full 100% finance.
Auction Finance in Kent
When you purchase a property at an auction, you usually have to pay within 28 days. Luckily, there are commercial finance lenders in Kent who specialise in auction finance. You will be able to raise and pay the mortgage far quicker.
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 Kent
Bridging finance is used to bridge a short-term gap between needing the finance to cover building and development expenses and making the payment. Bridging finance terms are usually spread over 3-24 months, with monthly payments.
For example, bridging finance is usually used to cover the time between a property being purchased and the mortgage being agreed upon.
Development Finance in Kent
Development finance is used to fund purchasing land and building or refurbishing a premises upon it. You will be able to borrow money against the value of the land and the cost of building.
The value of the project at the end of the development is called the Gross Development Value (GDV) and is one of the factors that lenders will use to assess the amount you will be able to borrow.
You, the developer, will need to understand and accurately predict the building costs, land purchase costs and transaction costs to determine the amount and type of finance you’ll need to complete the project.