Commercial Mortgages in Surrey
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.
Auction Finance in Surrey
When you purchase a property at an auction, payment will usually be expected within 28 days. Since it is quite rare for small to medium businesses to have that much ready cash to hand, there are several options and various lenders in Surrey who specialise in auction finance. Although auction finance is far quicker to raise than a conventional mortgage, the interest rates will be higher, since the repayment schedule is on a short-term basis.
It is common for businesses to remortgage this finance onto an ordinary commercial mortgage.
Bridging Finance in Surrey
Bridging finance, as the name suggests, is used to bridge a short financial gap in a business’s working capital. It is often used to cover purchasing a property or building and development costs, when your working capital can’t cover it.
Bridging finance is usually borrowed on terms running from 3-24 months and you will be expected to make monthly repayments.
Development finance in Surrey
Development finance is the money borrowed to cover the development of land or property. This can cover building a new structure on land, or refurbishing and developing an existing property.
The value of the project is shown via the Gross Development Value (GDV), and this metric, minus the associated costs, will determine your profit at the end of the project.
It is essential that your financial and project forecasts are well thought out, taking into account the cost of the land, the cost of tools and equipment, transaction fees and much more.