Commercial Mortgage

ShazzaW

I am looking for advise on a commercial mortgage for purchase of a property in Scotland

Senior_Paper_Monitor

You are going to have to give a lot more information than that before anyone can even point you in the right direction ....

type of property

value/deposit available

private or company purchase - income/trading records of whichever applies

..... should be enough to tell you if its do-able.

Then detailed investigation by bank/lender to process any application

Conrad

ShazzaW wrote: »

I am looking for advise on a commercial mortgage for purchase of a property in Scotland

Maximum loan to value is typically 70%, a lot less for certain types of property / venture.

Some lenders require you to provide masses of detail to include the existing occupiers Bank stats and 3 years accounts, as well as the same from yourself. They can ask for a full business plan, Directors loan guarantees, full details of any subletting tennants and a hundred other matters.

However, if you are prefering a lender that requires lessor info, then this will be reflected in the interest rate, but even so there is still quite an arduous legal task ahead.

Lenders will reqire a costly commercial valuation be carried out, after an initial very basic outline loan approval (trust me these things are more or less worthless and gurantee nothing).

The reason for this is lenders want serious motivated applicants only, and one way to filter out the time vampires and dreamers is to request a chunky up front valuation fee.

Have you tried you own Bank first?

Currently these are some of the categories lenders are particularly nervous about;

+ Pubs
+ Restaurants
+ Golf courses
+ Hotels


Security and sustainability are the key ingredients lenders look for.

kingstreet

I agree with Conrad. When I was young and niaive I spent weeks working on a commercial, finding the client a very good rate after lengthy digging.

First thing they did is stick it in front of their own bank and got .5% shaved off the rate I'd found them.

Needless to say, that only happened once!

Conrad

kingstreet wrote: »

I agree with Conrad. When I was young and niaive I spent weeks working on a commercial, finding the client a very good rate after lengthy digging.

First thing they did is stick it in front of their own bank and got .5% shaved off the rate I'd found them.

Needless to say, that only happened once!

Nowadays I just wont entertain anyone unless I think they are serious and liable to do business. Life is way to short for tyre kickers who make a habit of using others time for free.

You want my info, time and experience - you pay just as your boss pays you for yours.