Mortgages for Commercial Investment
At Crystal Clear Commercial Mortgages we have a highly experienced team that can consult with you on every aspect of commercial property investment.
Our team of brokers has experience in dealing with commercial property investment across industry sectors including retail, industrial, offices, leisure and agriculture.
We also deal with a wide variety of investors from those looking to buy a single shop or office to large-scale commercial purchases such as out-of-town retail parks or farms and multi-million pound propositions in central London We understand that every investor is unique and tailor our package to suit your needs exactly.
However, the main factor affecting your retail investment mortgage is the quality of your tenant – for example, you’ll get better rates if you have a recognized high street retailer or blue chip company as a tenant.
Semi-commercial |
A semi-commercial property is a property with a residential (usually buy-to-let only) and a commercial component – a retail unit with a flat above it, for example. The majority of lenders will treat these types of property as a commercial property with the commensurate rates and terms. Many property investors choose a semi-commercial property as their first move into commercial property from the buy-to-let sector. We have experience of helping investors new to this sector as well as those who have large portfolios of semi-commercial property. |
Non-conforming
The Commercial Lender is a specialist in this type of mortgage. We recognise that many investors may have been affected by adverse credit history and it’s our belief that this shouldn’t hinder the business growth.
Rates and terms for non-conforming loans will vary from those of a standard commercial mortgage with the maximum loan to property value usually at 75% while rates would normally start at around Bank Base Rate + 2.5% upwards depending individual circumstances.
Our maximum term for a commercial investment mortgage is usually 30 years and interest only options are available in most cases. Maximum loan to property value is usually 85%. All quoted figures may vary depending on your particular circumstances - please talk to one of our advisors for more details.
For your expected monthly mortgage repayments use our commercial mortgage calculator.
Commercial Investment Market Place |
Commercial Investment Mortgages are aimed at individuals or businesses that wish to buy commercial property as an investment, with the purpose of making their money from the rent and from increases in the property value. Rates on commercial investment mortgages are bespoke and will usually depend on the strength of the tenant – a major high street retailer with a 10-year lease will look far more attractive than a start-up with a short lease. Rates and decisions may also depend on the track record of the borrower in commercial property investment. In addition, both the quality of the property and the industry sector will affect your funding. Better quality assets attract preferential rates while businesses such as nightclubs, nursing homes and petrol stations may be more difficult to fund. |
All commercial investment mortgages are priced above Bank of England Base Rate or LIBOR (London Interbank Offer Rate). The maximum loan value is usually 85% loan to property value; most borrowers should expect a more realistic maximum of between 70% - 80%. Most lenders apply a maximum borrowing of 25 years, although this may be extended to 30 years in some cases.
Total returns, for the commercial investment market in 2005, were 19.1%, which takes into account revenue gained from both rental and capital growth in the value of the property itself.*
In the same year, offices were the highest returning property type at 20.4% with retail at 18.8% and industrial at 18.4%.*
Find out more about growing your business – call one of our qualified advisors now on 0800 881 8834
*all figures from the IPD (Investment Property Databank)
