Feb
04
Where can i get a commercial mortgage on a Leasehold Property?
By
Any idea on where i can get a commercial mortgage on a leasehold property. I will have a 50% deposit on the property but would like the othe 50% as a mortgage. Also if i have a commercial mortgage can i also get a residential mortgage on another property and will this effect how much i could get?
Any information would be gratefully recieved.
thanks
Quick House Sale
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2 Comments
July 24th, 2009 at 2:54 pm
You can get a commercial mortgage from any of the normal lenders – all major banks will do them, along with building socieities.
The fact it is leasehold should be largely acadmeic – providing that the lease is long enough (usually term of loan plus 25 years). If its less you will need to discuss the individual case for this with a business manager / adviser at a bank.
Largely this won’t affect your ability to get a residential mortgage. The commercial mortgage will be a business issue, for your business. As long as you can afford to repay a residential mortgage and keep your business going it should be fine.
NB: this is just a guideline answer as a lot depends on the specifics of your situation, and how much you are looking to borrow. Speak to a few banks and see what they have to say.
July 26th, 2009 at 6:01 pm
It all depends on what the lease terms are, if its a short renewable lease then you might struggle as lenders don’t have anything to ‘pin’ their security on.
if its a long lease eg 70 years then most commercial mortgage lenders will look at it, depends if its a new venture for you if so you might need to approacha commercial mortgage lender who’s a bit more flexible than a bank
try affordablemortgages.co.uk they can search across 80 commercial mortgage lenders in one go – saves you a lot of time !