financing a commercial property

[surrey7er]

Hi folks,

I am currently looking to find a £200k loan, to buy a £300k building. The balance will be privately financed...

My question was really if anyone has any recommendations for this sort of thing? I have only really done this with our bank before, but wondered what the other options were?

Many thanks

[Manks]

surrey7er said:

Hi folks,

I am currently looking to find a £200k loan, to buy a £300k building. The balance will be privately financed...

My question was really if anyone has any recommendations for this sort of thing? I have only really done this with our bank before, but wondered what the other options were?

Many thanks

So your bank won't do it for you right? Another one that claims to be lending but actually isn't.

It's going to depend on what the building is and what it will be used for, but in the current market you'd probably do well to talk to an experienced broker. It will cost you 0.5% but he'll know whose in the market and how to pitch your case.

Or there's private money, which will be harder and more expensive to borrow.

Manks

[surrey7er]

Manks said:

So your bank won't do it for you right? Another one that claims to be lending but actually isn't.

It's going to depend on what the building is and what it will be used for, but in the current market you'd probably do well to talk to an experienced broker. It will cost you 0.5% but he'll know whose in the market and how to pitch your case.

Or there's private money, which will be harder and more expensive to borrow.

Manks

we've tried 2 banks. One was a flat 'no' the other was a 'probably'... Just wanted to look at the other options on the list really...

cheers

[Manks]

surrey7er said:

Manks said:

So your bank won't do it for you right? Another one that claims to be lending but actually isn't.

It's going to depend on what the building is and what it will be used for, but in the current market you'd probably do well to talk to an experienced broker. It will cost you 0.5% but he'll know whose in the market and how to pitch your case.

Or there's private money, which will be harder and more expensive to borrow.

Manks

we've tried 2 banks. One was a flat 'no' the other was a 'probably'... Just wanted to look at the other options on the list really...

cheers

Well really it's banks direct or brokers. But beware, many banks are claiming at present that they are happy to lend and then either not doing so or making it quite expensive.

I am also hearing horror stories about loan offers being made, deals proceeding and then when drawdown is required the money not being available.

In the current climate your regular bank is by far the best option if they will do the deal.

I deal with commercial lenders quite a bit and the lending situation is worse now, in my opinion, than it was eighteen months ago.

Manks