Property Finance

There are many different products available in terms of property finance for purchase and development.

Commercial Mortgages

Commercial mortgages can be used to purchase shops/offices and warehouses. Working in the same way as residential mortgages they spread the cost over an agreed period.

The most common commercial mortgage is an existing business buying its own premises from which they operate. This allows you to stop paying rent and start paying back the commercial mortgage, eventually owning the property outright.

You can sometimes obtain 100% finance if you have a good trading record and additional security.

A commercial mortgage might be suitable for an experienced landlord who wants to buy further properties and place several properties on one mortgage.

We have a great relationship with advisors at Samera. We are in middle of a purchase. Samera advisors are doing an amazing and thorough job, from assessing practices, obtaining loan to providing accounting services. Nigel has been very patient, understanding and considerate. Overall, very happy with the service and would highly recommend.

Five stars

Auction Finance

Properties bought at auction usually have to be paid for within 28 days, there are lenders who specialise in auction finance. This is much quicker than obtaining a commercial mortgage but interest rates are higher due to the short-term nature of the finance. Usually, owners will remortgage in due course on to a standard commercial mortgage

Some lenders will give you an agreement in principle prior to an auction, this usually has conditions such as the type/condition and price of the property.

Bridging Finance

This type of lending covers any short-term finance to cover building and development costs. Usually, this type of property finance runs for 3-24 months with interest charged on a monthly basis.

Used to cover the funding gap where a property has been purchased and the mortgage is not in place.

Development Finance

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 read our article on how to finance a healthcare business.

Property Finance in SE England

For more information on raising commercial property finance for your business in SE England, please choose from the following links:

• Commercial Property Finance in Buckinghamshire
• Commercial Property Finance in Essex
• Commercial Property Finance in Hertfordshire
• Commercial Property Finance in Kent
• Commercial Property Finance in Surrey

Case Studies

20-year, 100% Mortgage

“Mr Nigel Crossman has looked after us throughout the process of investing in dental practice. We first made contact with Nigel and he was extremely approachable, methodical and most of all professional. He used language we could understand and no task was too onerous or complicated. He saw opportunities when others saw hurdles. Communication is one of his strongest points and doing so in a clear and concise way helped us immensely. I strongly recommend both Mr Crossman personally and Samera.”

Five stars

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