Commercial Mortgages
If you’ve outgrown your business premises or have become tired of renting office space, a commercial mortgage allows your business to get on the property ladder and add valuable assets to its name. Our qualified and trusted mortgage advisers have put together the key points for anyone considering taking out a commercial mortgage.
What is a commercial mortgage?
A commercial mortgage gives business owners the option to borrow money to buy either an existing property or an area of land for development. The purchase must be for business purposes and there are many lenders to choose from.
Commercial mortgages are also popular with investors who wish to buy commercial property and lease it to businesses, as well as landlords looking to buy multiple properties to rent out to tenants.
Why buy a commercial property?
Though renting commercial and industrial premises is very popular, buying property opens up a world of opportunities for a business. One of the most common reasons for taking out a commercial mortgage is that your business can then change and upgrade the property as it sees fit, which usually won’t be possible with a lease agreement. Buying commercial property also means that you can be certain of how much you’ll pay each month without any sudden increases imposed by a landlord.
Perhaps most importantly, buying commercial property means that your business is acquiring a valuable asset that could rise in value over the years, perhaps to a significant extent. Once you own the building outright, you’ll also make instant savings because there won’t be any rent or mortgage payments coming out of your business bank account.
As an added bonus, the interest you pay on your commercial mortgage is tax-deductible, so it can be offset against your company’s tax liabilities.
How do commercial mortgages work?
Commercial mortgages differ from residential mortgages in a few ways:
- They usually involve a larger amount being borrowed.
- They have higher interest rates.
- They often come with a variable rate that changes as the Bank of England base rate fluctuates.
- The lender will most likely ask for a deposit that’s between 20% and 40% of the property’s total value.
We’ll help you find a commercial mortgage
Investing in commercial premises is a very wise move and can greatly benefit the cash flow and value of your business. However, commercial mortgages are harder to research and apply for online, which is why our experienced advisers are here to guide you through the process and find you the best deal.
Get in touch
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Commercial Mortgages in Worcestershire and Kent
Droitwich Office
5 Saltway, Droitwich, Worcestershire, WR9 8LB 01905 779697
Sevenoaks Office
46 Holly Bush Lane, Sevenoaks, Kent, TN13 3TL 01732 926255
