Raising Finance on Commercial Property?
Discussion
We have a large project coming up which will require a sizable outlay on the old £££ front. While we have the necessary capital, it may be more sensible to release some of the equity we have in our newly built offices which are totally debt free.
The property is worth anywhere between £750k - £1m, and we'd be looking to release a significant proportion of that.
Does anybody have any advice on mortgaging such a property, and what sort of a rate we'd be looking at?
The property is worth anywhere between £750k - £1m, and we'd be looking to release a significant proportion of that.
Does anybody have any advice on mortgaging such a property, and what sort of a rate we'd be looking at?
Andy M said:
We have a large project coming up which will require a sizable outlay on the old £££ front. While we have the necessary capital, it may be more sensible to release some of the equity we have in our newly built offices which are totally debt free.
The property is worth anywhere between £750k - £1m, and we'd be looking to release a significant proportion of that.
Does anybody have any advice on mortgaging such a property, and what sort of a rate we'd be looking at?
Should be possible, depending on the figures stacking up from the banks poin of view. The property is worth anywhere between £750k - £1m, and we'd be looking to release a significant proportion of that.
Does anybody have any advice on mortgaging such a property, and what sort of a rate we'd be looking at?
I can drop you a line in the morning and ask a few questions if you like.
Total LTV varies from lender to lender and project to project, I've seen deals from 65% to 100% of bricks and mortar value. Obviously the rae is partly determined by this. (more risk, bigger margin charged) Are you looking at this a short term funding?
Andy,
I work for one of the largest commercial finance specialists in the UK. We deal with this type of thing day in day out so should definately be able to help.
If you like, PM me your details, and I'll get one of our team to call you and offer some advice.
Gareth
I work for one of the largest commercial finance specialists in the UK. We deal with this type of thing day in day out so should definately be able to help.
If you like, PM me your details, and I'll get one of our team to call you and offer some advice.
Gareth
Edited by Dick Dastardly on Tuesday 7th August 13:06
Click on my ID and then hit the 'Email me' button.
If you'd rather be old fashioned and use a phone that's fine. Call 0845 230 3 230 and ask for Gareth.
All contact details can be found here: http://www.kingswoodassociates.co.uk/
If you'd rather be old fashioned and use a phone that's fine. Call 0845 230 3 230 and ask for Gareth.
All contact details can be found here: http://www.kingswoodassociates.co.uk/
Hi,
Although Mr Dastardly can give you some help, if you want another point of view im an Independent Financial Adviser based in the north east, we handle commercial loans and have been able to handle any size sum in the past, of course your situation will be unique and i would be glad to help
If i can be of help please click on my name above my post and then e-mail me, failing that reply in the forum!
Although Mr Dastardly can give you some help, if you want another point of view im an Independent Financial Adviser based in the north east, we handle commercial loans and have been able to handle any size sum in the past, of course your situation will be unique and i would be glad to help
If i can be of help please click on my name above my post and then e-mail me, failing that reply in the forum!
Edited by DannyR on Wednesday 8th August 12:39
Andy,
With regard to raising 75% (or 875k), the bank will assess your ability to service the loan, or if you have a tenant in place, the agreed rental income. They will also look at your experience/history of this type of transaction.
If the serviceability is not a problem you should easily get a LTV of 70% and could expect to pay around 1.25-1.75% over base rate for a commercial mortgage, plus an arrangement fee of below 1%.
Unless someone can point me in the direction of a cheaper lender?
Cheers,
Jim
With regard to raising 75% (or 875k), the bank will assess your ability to service the loan, or if you have a tenant in place, the agreed rental income. They will also look at your experience/history of this type of transaction.
If the serviceability is not a problem you should easily get a LTV of 70% and could expect to pay around 1.25-1.75% over base rate for a commercial mortgage, plus an arrangement fee of below 1%.
Unless someone can point me in the direction of a cheaper lender?
Cheers,
Jim
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