Please Help!!!

BL1

Hi

I am wanting to purchase a property for my business, could someone explain the mortgage process to me? Would I have to pay the deposit of the property and then the mortgage people pay the rest of the amount of the property cost and I then pay them a sum of money each month similar to rent? When i have payed off the value of the property, the property is then mine. Is this right?

Thank you in advance

littlereddevil

Yeah that's the way it works

Conrad

BL1 wrote:

Hi

I am wanting to purchase a property for my business, could someone explain the mortgage process to me? Would I have to pay the deposit of the property and then the mortgage people pay the rest of the amount of the property cost and I then pay them a sum of money each month similar to rent? When i have payed off the value of the property, the property is then mine. Is this right?

Thank you in advance

Some tips for you;

When I arrange a commercial mortgage, the first thing any lender wants to know is 'what is the exit route'?

In other words if the loan goes bad can they recover thier capital plus the costs of interest, late payment charges, baliffs, lock - smiths, court hearings, barristers, administration, tracing agents etc etc. Such costs can be very significant and have to come from the forced - sale proceeds.

They will also assume a distressed repossesion scenario, that is, they expect to receive the property wrecked by the out - going resentful client (you).

So, if they can see there is enough equity to cover all above eventualities thats a good start. Typically this means a maximum loan of 75% of CURRENT value, but often only 65% is offered.

The following business types are very high risk based upon lender repossesion stats; Night clubs (due to drug close - downs), Golf Courses, Restaurants, Hotels to name a few.

Youll need a business plan.

The good news is that there has never been such fierce competition between lenders as many more players have recently entered the market.
Be wary of Bank who will be eagre to 'slip into' the contract a clause stating your own home will also be used as loan security.