Your entrepreneurial desires are strong. You want to secure your future and have decided property investment
is your ideal choice.
Our experience in property and finance is available to you free of charge. You know you will be getting experienced advice. We are not a loan provider, but we will source the best one for your situation, so give us a call and let’s sit down and discuss your future goals.
When buying commercial or industrial property
there are generally two scenarios. One is a purchase purely as a standalone investment. The other is a purchase by a business owner who will use the premises for the future operation of his/her business thereby becoming an owner / occupier.
In the first scenario the purchase of a commercial or industrial building
as a standalone property investment will result in maximum lending against the property purchase at somewhere between 60-70% of the purchase price /property value.
Factors such as - the lease term , strength of tenant , location , building type, saleability, borrowers personal covenant, adaptability of premises - will all play a part in what level a lender is prepared to approve a loan to.
The balance of the purchase price will therefore need to be provided by cash or borrowings against the equity in other property owned by the purchaser. The latter option will of course depend upon the applicants ability to service the total debt.
In the second scenario where the business owner wishes to purchase premises from which to conduct his/her business, some lenders are more lenient on lending levels and will advance mortgage
money to a much higher level and in exceptional circumstances fully fund the purchase.
The level of lending will depend upon the strength of the business, particularly profitability, current rent being paid, length of time the business has been operating, location and the borrowers personal covenant.
Before making any decisions in either scenario we suggest you contact us at Oliver Mortgage & Insurance, provide us with a brief of your requirements and let us do the legwork for you.
You won’t be disappointed!