There are many different products available in terms of property finance for purchase and development.
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
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.
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 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.
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
Commercial Loans for Healthcare Businesses
We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.
You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.
For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.