90% LTV on a commercial property possible?

ksouth

Good morning Folks,

A little advice required if you might oblige me.

We're currently looking into purchasing a Hotel (small - 18 rooms, good turnover and ANP already plus opportunity for growth etc.) It's on the market for 1.6mil.
We are able to put 10% up front and therefore, for this particular property would require a 90% loan/investment. We would like to hold back a little cash for the running/ stock etc of the place initially hence the low deposit.
Are over here in lala land in thinking that this may be a possibility?
We have excellent experience in the field, excellent credit and the business is already running great numbers which we could improve even further. So on paper, we are very good candidates - and the land it's on along with the bricks & mortar are worth that alone in that location.

I'm aware that the going rate on Commercial mortgages are around 75% - 85% at a stretch. Are there platforms for silent investors or specialist loan companies that we could approach? Is there another avenue we could investigate to make this a reality?

Your help and thoughts are most appreciated!
Thanks,
KS

amnblog

Commercial lending is not flexible on security.

Unless you have another property as additional security, this is not happening.

ksouth

Thank you for your reply.
2 properties are owned, one is abroad and one is shared. Neither are particularly high value.
Would this change the outcome?

davidmcn

ksouth wrote: »

2 properties are owned, one is abroad and one is shared.

Not quite sure what you mean by "shared", but all the owners would need to sign up to any security. Properties abroad won't be much use.

I'm aware that the going rate on Commercial mortgages are around 75% - 85% at a stretch

Is that generally, or for your sector in particular? I understood lenders regarded small hotels as riskier than average, which might push down the LTV.