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Commercial Mortgages
A commercial mortgage is any loan secured on property which is not your primary residence.
Commercial mortgages are often used when a standard business loan is not applicable. Business loans up to around £25,000 are normally unsecured, but for larger amounts lenders will be looking to mitigate their risk by requiring additional security.
A commercial mortgage normally lasts between 3 to 25 years, with the average term being 15 years. These terms can sometimes vary depending upon the lender. The loan to value is typically 70 -75 %. If it is an investment, then the amount you can borrow will be determined by the rental income generated by the investment, but this will not normally exceed 65% of the purchase price.
The purchase of a building using a commercial mortgage can seem a daunting proposition, but at Blackstone Solicitors we have the experience and know-how to make the process as stress-free and time-efficient as possible. We understand such transactions can appear complex, which is why our commercial conveyancing solicitors are here to guide you through the process.
If you would like to find out more about how we can help, simply give us a call on 0345 901 0445, or complete our online enquiry form and a member of the team will get back to you. We are passionate about every case we take on, so you can rest assured we will do all we can to make what might seem difficult, simple.
“I received very good service and advice, given to me on a week by week basis. I would strongly recommend Blackstone”
– Paul 
How we can help
Our team is well versed in dealing with all the various aspects of commercial conveyancing, and we are here to help in any way we can. For instance, our expertise can help you get the best outcome if:
- You want to enter into a commercial mortgage
- You wish to transfer interests in a commercial property
- You want to draw up a lease agreement
The process
There are a number of differences between a commercial mortgage and a residential mortgage:
- There are usually no fixed rates for commercial mortgages.
- Commercial mortgages are considered higher risk as compared to residential mortgages. Consequently, interest rates tend to be higher.
- Commercial mortgages tend to offer better interest rates than regular business loans as these require property as collateral.
There are a number of advantages of using a commercial mortgage to purchase a property:
- The interest on your commercial mortgage is tax-deductible
- If your property increases in value, your capital could also see an increase
- The property can provide a good source of rental income.
Laws relating to the buying a building with a commercial mortgage can be particularly complex.
However, we are here to make the experience as hassle free as possible for our clients. We will do the hard work so that you don’t have to, and we will keep you constantly updated on everything as we go. Various important, yet complex tasks must be carried out as part of the conveyancing process when a commercial mortgage is involved, so it is important you have the right legal assistance to guide you through.
There are many issues involved in the commercial conveyancing process, and examples of some of those we can help with include:
- Commercial mortgages
- Buying or selling business premises
- Remortgaging business premises
- Planning and development
- Lease transfers
Get in touch
It really couldn’t be easier to get in touch with our friendly team and discuss your situation. Simply give us a call on 0345 901 0445, or, if it is easier for you, fill in our online enquiry form and allow a member of the team to contact you. Our team is located in Manchester and we have a second office in London, and we help people throughout the Chester and Cheshire areas, as well as across the UK.
