Commercial mortgage via a ltd

[PostHeads123]

How does it work with commercial mortgages that you have via ltd company, so say for example I have ltd company X that is commercial property development firm and I want the mortgage in the ltd name how does the lender determine the ltd company is ok to lend to, I would be talking £1.7mil - £2.5 mil mortgage size ? Do they look at old accounts for the ltd, do they look at the experience of the directors of the ltd in respect of property development ?

thanks

[Zoon]

Last 3-5 years of accounts for a start.
Then shoe size, dental records and penis length.
And on top of that detailed information.

[Muncher]

Are you looking to buy residential property through the limited company to develop?

[PostHeads123]

Muncher said:

Are you looking to buy residential property through the limited company to develop?

Sort of its commercial property (shops) with flats above does need work, I would buy freehold and sell flats as lease hold and shops the same or rent.

[Muncher]

What's the purchase price?
How much of your own cash are you able to put in?
How much will all of the property rent for in its current condition?

[Dick Dastardly]

If it's for development and via a Ltd Co then it's quite standard these days for lenders to require personal guarantees.

Luke and Tom at PCF specialise in this stuff. I'd advise running it past one of them. They've solved all my commercial finance issues (I've had a few pretty complicated ones). http://www.purecommercialfinance.co.uk

[JQ]

Most commercial properties are bought within SPV's, so the trading records of the company become irrelevant. It will be all about the value of the property, the quality of the property, the experience of the directors and personal guarantees. A standard commercial mortgage would be 65% LTV, less if you're doing a speculative development. Anything above that and rates and fees will start to climb very rapidly.

As above, if this is not your area of expertise finance brokers can be invaluable. These guys are very good and cover the whole of the UK http://www.gdpfunding.com/