Negotiating The Terms Of A Mortgage
Our solicitors are vastly experienced in assisting individuals and companies of all sizes to facilitate and advise upon negotiating the terms of a mortgage. At Blackstone Solicitors, we are able to advise many different types of client on the process involved, no matter the complexity of the circumstances being considered and the proposed terms of the agreement.
For more information about how our team of corporate solicitors can help, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
A mortgage against property is an important and formal contract evidencing borrowing and additional terms agreed between the parties.
There are fundamentally two types of loan agreements, secured and unsecured.
A mortgage is an example of a secured debt as the money that is borrowed is secured against a property asset. In the case of a corporate entity borrowing the money, a charge may be taken out against the company’s assets or shares.
Secured loan agreements involve additional legal work and are often the types of loan agreements offered by banks or other sizeable financial institutions on a non-negotiable, take it or leave it basis in terms of the clauses incorporated into such agreements. We can advise you whether there is scope for negotiation, and if not, on the full implications of these legal documents.
Blackstone Solicitors are known for our efficiency, attention to detail and ability to get things done; qualities much needed when negotiating with a bank or other lender. We will provide professional, pragmatic advice based on our years of experience in this specialist area.
Our team will do all that is necessary to ensure you are properly and robustly represented in any negotiation and will put your interests first at all times. Negotiating the terms of a mortgage agreement can be highly technical and we will ensure you are in the best possible position for a successful outcome.
Why Legal Help is Important
It should be remembered that taking out a mortgage can take place in companies of any size and in any industry.
The process can be complex, potentially stressful and can be considered to be
incredibly important. It can have an impact on you and your business, both in the short and long term – it is therefore imperative that you have the best legal experts at your side, not only to ensure everything progresses as it should, but also to make sure both you and your business benefits from the best possible terms of any agreement.
Business loans up to £25,000 are often unsecured, but for larger amounts, lenders need security in order to reduce the risk to themselves. This takes the form of a commercial mortgage.
A business mortgage usually lasts from three to 25 years and you can usually find a 70-75% mortgage. This is a measure of loan-to-value ratio to see how much you’re borrowing in relation to how much the property is worth. If it’s 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. If you are buying a business which includes goodwill, stock etc then the amount available will be further reduced.
A business mortgage plan differs from a regular mortgage in a number of ways. Firstly, commercial mortgages are considered higher risk than residential mortgages so you will often end up paying more than for a regular home mortgage, secondly, it is unlikely you will be able to obtain fixed rates for a commercial mortgage and thirdly commercial mortgages tend to offer better rates of interest than standard business loans.
Whatever the circumstances are of the mortgage agreement, we ensure full compliance with corporate laws and regulations, so that you can be sure that the process is addressed on a firm financial and legal basis.
We will work with you to ensure all financial, tax and legal aspects of any proposed agreement is properly managed. We are able to assist with any aspect of this and will guide you through the technicalities in a clear and concise way. We have a team of experienced solicitors well versed in the process who are ready to assist you.
Get in Touch
Find out more about our services and how our corporate solicitors can assist you and your business by getting in touch. We have offices in Cheshire and London and are able to serve clients across the North West, including Chester and Manchester, as well as throughout the UK and also overseas.