Commercial property? Or residential?
Discussion
Hi All,
I am looking at purchasing the freehold to a large building.
It comprises of 12 flats and two offices.
The offices are leased out to a bank and some sort of council service type place.
In terms of getting a mortgage for this place, do I have to opt for commercial?
The obvious disadvantage being the circa 10% interest rates on a commercial mortgage, I would much rather get a residential mortgage!
Thanks in advance.
I am looking at purchasing the freehold to a large building.
It comprises of 12 flats and two offices.
The offices are leased out to a bank and some sort of council service type place.
In terms of getting a mortgage for this place, do I have to opt for commercial?
The obvious disadvantage being the circa 10% interest rates on a commercial mortgage, I would much rather get a residential mortgage!
Thanks in advance.
Sounds like you'd have to get a Commercial mortgage. Because there is a bank in there (they are classed as great tennants) the interest rates would be nowhere near as high as 10%, provided of course your own credit history isn't awful. 10% interest rates are for non-status deals and people who collect CCJs.
If you would like further info or help arranging a mortgage then send me a private email and I'll give you the details of my colleague who is a leading expert in the commercial finance field.
If you would like further info or help arranging a mortgage then send me a private email and I'll give you the details of my colleague who is a leading expert in the commercial finance field.
dick dastardly said:
Sounds like you'd have to get a Commercial mortgage. Because there is a bank in there (they are classed as great tennants) the interest rates would be nowhere near as high as 10%, provided of course your own credit history isn't awful. 10% interest rates are for non-status deals and people who collect CCJs.
If you would like further info or help arranging a mortgage then send me a private email and I'll give you the details of my colleague who is a leading expert in the commercial finance field.
If you would like further info or help arranging a mortgage then send me a private email and I'll give you the details of my colleague who is a leading expert in the commercial finance field.
I would go along with that. Lenders love having banks as tenants and I would expect something like 1.75% over base rate unless the bank lease is close to expiry
It's still hard to make money in the short term on property as the yields are so low and have not yet shifted to take account of the recent increases in interest rates but if you have a good tenant then it can be worthwhile eventually
We have contacts at a couple of lenders so if you need any more details just email and I will get you in touch
To me thats the best sort of investment going.
A mix of both. One market is usually strong and the other stronger or visversa.
The only lookout is if they are purpose built flats or converted, as it is a pain dealing with HMO's and the various fire regs that affect buildings with many occupants.
Hopfully yours will have it all in place and not be HMO's
A mix of both. One market is usually strong and the other stronger or visversa.
The only lookout is if they are purpose built flats or converted, as it is a pain dealing with HMO's and the various fire regs that affect buildings with many occupants.
Hopfully yours will have it all in place and not be HMO's
Gassing Station | Business | Top of Page | What's New | My Stuff