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Mortgage/loan on lock up garages?

Hi does anyone know if it is possible to get a mortgage on blocks of lock up garages. and what type of loan, ie. buy to let, commercial mortgage etc
many thanks

Comments

  • bump....anyone?
  • RufusA
    RufusA Posts: 939 Forumite
    500 Posts
    You'll probably need a commercial mortgage, but may also require a personal guarantee if your business doesn't have much history.

    Speak to a specialist broker who covers residential and commercial mortgages / loans to see what options are available.

    Rufus,
  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    Yes, it will be a commercial loan with a maximum loan to value of 75%, although in this climate it could be less.

    2 ways of approaching this;

    1) Non status

    2) Full documentation
  • so would it be possible to put other blocks of garages I own outright down insetead of a cash deposit?
    And sorry for sounding stupid but what is non status and full documentation?
  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    Yes other security in the form of debt free property could be used potentially instead of cash.

    Non status is where the lender lends without too many questions, pretty much on the stregnth of the property asset rather than detailed analysis of your business accounts. Of course they will want a higher rate though, anything from about 5-12% depending on how well the deal stacks up.

    If you want a rate of around 4 / 5% then you need a high street Bank, but of course they will want a detailed underwriting process carried out, 3 years accounts, a business plan etc.
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