Buying a Commerical Property
Discussion
Hi Guys,
I am pondering with the idea of buying a commerical property. It is a warehouse with a good size office.
I wanted to get some advise on actually financing the property. Does anyone have any advise on getting a commerical mortgage? I am happy to put down around 30-40% of the value of the property.
The agent I seen today seem to give me the impression a few people have looked at it before Xmas and another viewing was after me. With that being said I do like the place and I guess at a push would have the funds available to buy outright ASAP. If I done this would it be possible to arrange for the mortgage after?
Sorry if some of these questions are basic - much of this is all very new to me.
Thanks.
Ps. Any other advise at all is most welcome. Also I feel the price they want is a little rich, I am tempted to offer a lower price and see what they say.
I am pondering with the idea of buying a commerical property. It is a warehouse with a good size office.
I wanted to get some advise on actually financing the property. Does anyone have any advise on getting a commerical mortgage? I am happy to put down around 30-40% of the value of the property.
The agent I seen today seem to give me the impression a few people have looked at it before Xmas and another viewing was after me. With that being said I do like the place and I guess at a push would have the funds available to buy outright ASAP. If I done this would it be possible to arrange for the mortgage after?
Sorry if some of these questions are basic - much of this is all very new to me.
Thanks.
Ps. Any other advise at all is most welcome. Also I feel the price they want is a little rich, I am tempted to offer a lower price and see what they say.
This is something I've done a couple of times in the past. You will typically get up to 70% Loan to Value with commercial unless you want to start offering personal guarantees or other security, so your deposit amount is fine.
Buying it cash and then remortgaging should be ok. You may be liable to more legal costs that way though and if you wait too long then the valuations will be out of date and will need re-doing.
How much the banks lend and the rate and term will depend on the use, such as if it is an investment purchase or an owner-occupier one (i.e. your business buying it to trade from). It's very different to residential finance as banks view deals so differently and regularly change the target properties/markets that they want to fund, so you need to speak to a lot of them to find the right deal.
I didn't have time to chase them all so I used a commercial mortgage broker for my stuff. They got me a great rate but more importantly took the hassle out of it all. I've since become good mates with the guys there (and even convinced them to become a client) and know that they would be cool for you to pick their brains on this stuff. This is them if you want to run the situation past them: http://www.purecommercialfinance.co.uk/
Good luck.
Buying it cash and then remortgaging should be ok. You may be liable to more legal costs that way though and if you wait too long then the valuations will be out of date and will need re-doing.
How much the banks lend and the rate and term will depend on the use, such as if it is an investment purchase or an owner-occupier one (i.e. your business buying it to trade from). It's very different to residential finance as banks view deals so differently and regularly change the target properties/markets that they want to fund, so you need to speak to a lot of them to find the right deal.
I didn't have time to chase them all so I used a commercial mortgage broker for my stuff. They got me a great rate but more importantly took the hassle out of it all. I've since become good mates with the guys there (and even convinced them to become a client) and know that they would be cool for you to pick their brains on this stuff. This is them if you want to run the situation past them: http://www.purecommercialfinance.co.uk/
Good luck.
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