Looking for a commercial investment mortgage ..... (if any brokers can help)

Jaxer

This is for any brokers who might be able to help me with a commercial investment property mortgage.

The basic situation is as below :

The property itself is a shop with living accommodation above and is currently in a rundown/derelict state (ie. it won't be immediately let). I'll be looking to refurbish it and separate the shop from the flat and let them out as separate units after the work is done.

The Property Value is approx. £200K in it's current condition. I'm looking for a mortgage of £125K to consolidate existing borrowings (see below) and to finance the building work although I could look to reduce this if it would increase the charges of a successful application (the minimum I'd be needing is £100K).

There is no existing mortgage but I have unsecured loans/credit card borrowing of approx £60K which I'll be looking to roll into the new mortgage.

If anyone feels they can help in this situation, please can you email me at spambox@trashmail.net (this is simply a temporary email address which will get to my normal inbox to prevent spamming!). Thanks for reading!

homer_j_3

What income do you envisage coming from the units once done up?

Jaxer

homer_j wrote: »

What income do you envisage coming from the units once done up?

Hi there,

I'd expect around £15K pa combined as an absolute minimum, but depending on market conditions, could be nearer £20K. Also just to add my own income is based through a limited company so a salary/div combination but I don't know if this is relevant for commercial mortgages?

homer_j_3

I think you will be looking at someone like commercial first if you are looking at borrowing against the building value rather than on business plans etc. Commercial first are broker route only so it should be possible to include your own income if its not tied up elsewhere.

AndrewSmith

There are a number of routes you could take for this one.

You could look at short term development finance to raise the capital and get the building works underway, which could then be switched to a commercial mortgage once the situation re: tennants and rental was more clear. DOwnside of this is that you would likely pay entry and exit charges for the short term finance however it could be arranged quite quickly on flexible lending terms, especially with your loan to value being so favourable.

Depending on your current status (employed/self employed and income proof) you may be able to look at prime commercial deals. There are some available at approx 6.99% fixed rate and below. The main difference is though that instead of having a set list of products (as per residential mortgages), commercial mortgages are more of a tailored 'bespoke' package negotiated with the lender based on the overall mertis of the case.

Careful research is paramount to ensure that you go the right route for your circumstances, which is impossible to determine within the constraints of a chat forum.

If taking professional advice from a broker ensure they have the relevent commercial mortgage experience and knowledge of the application process.

Hope this helps

Andrew