Mortgages/Loans to fund purchase of commercial properties.

MONEY2SAVE

Hi all ,
I am wondering what are the various loans/mortgage options available to buy commercial/non-residential properties. To be specific we are looking to buy a shop/small office space to let.There are very little information seen on internet for these kind of loans. Any one with experience investing in such properties?? Please post your suggestions.
TIA.

waveneygnome

Do you have an existing business? If so - talk to your existing bank, they will know you best and be in a position to offer you a loan (or not - which will tell you something in itself).

Typically you will need a deposit of 25-35% if you are going to be the occupier of the building.

If you are buying to then rent out to others...........unless you have a good track record/other assets, I think you will struggle.

Expect to pay:
Higher interest rates than residential = base rate + 2% ish (negotiable)
Arrangement fees = 1% to 1.5% of loan amount (negotiable)
Valuation fees = £500 upwards
Solicitor fees = £1000 upwards (higher than residential)
Loan repayment over 15 yrs (not 25yrs a normal residential mortgage) - although this is also negotiable to a point.