Commercial mortgage - any recommendations please?

Discussion in 'General Business Forum' started by Sunny Days, Feb 8, 2018.

  1. Sunny Days

    Sunny Days UKBF Newcomer Free Member

    Posts: 20 Likes: 0
    Hi

    We have the chance of buying the shop (and flat above) that we've been renting for 3.5 years (the shop only). We weren't expecting this to happen just yet so we haven't saved for a deposit through the business. Our accounts show we're breaking even/small profit, with a small wage each and the rent always paid on time (Ltd company, myself and my daughter).

    So I know the business hasn't got much chance of securing a commercial mortgage :) However, my husband is employed with a fairly good job and we have some equity in our home which would be enough for a deposit on the commercial premises. This could mean moving into the flat above (saving us around £700 per month in current mortgage/business rent).

    We need advice on the best way of securing a commercial mortgage. Maybe we can buy to let? Maybe we can borrow on our home for the deposit? We're open to ideas. Please can you let me know of any recommended brokers you've come across. Many thanks.
     
    Posted: Feb 8, 2018 By: Sunny Days Member since: Feb 9, 2017
    #1
  2. Gordon - Commercial Finance

    Gordon - Commercial Finance UKBF Regular Free Member

    Posts: 349 Likes: 73
    Are you going to sell your home to release this equity or are you looking to keep the home and withdraw the equity?
     
    Posted: Feb 9, 2018 By: Gordon - Commercial Finance Member since: Jun 26, 2017
    #2
  3. Sunny Days

    Sunny Days UKBF Newcomer Free Member

    Posts: 20 Likes: 0
    I really don't want to move home, so withdraw equity if it's at all possible. TBH, we're looking for options/ideas.
     
    Posted: Feb 9, 2018 By: Sunny Days Member since: Feb 9, 2017
    #3
  4. Mark T Jones

    Mark T Jones UKBF Enthusiast Free Member

    Posts: 1,379 Likes: 340
    Talk to him
     
    Posted: Feb 9, 2018 By: Mark T Jones Member since: Nov 4, 2015
    #4
  5. Gordon - Commercial Finance

    Gordon - Commercial Finance UKBF Regular Free Member

    Posts: 349 Likes: 73
    Bit of a contradiction but ok.
     
    Posted: Feb 9, 2018 By: Gordon - Commercial Finance Member since: Jun 26, 2017
    #5
  6. Maz

    Maz UKBF Newcomer Free Member

    Posts: 16 Likes: 2
    Your best bet is business broker or even speak to bank to get advise
    - based on your sector you’ll need %30-%40 deposit if owner occupier
    - if it’s investment you’ll need more for deposit , again it’s based on the sector
    - you can’t borrow for deposit as it will get declined immediately ( perhaps gifted deposit ?? ) or equity realeas but bare in mind you’ll end up paying more if you realeas equity
    - you could ask your husband to get personal loan and gifted to you if he has a good credit rating
    - 2 or 3 year full account needed regardless of your husband income as they lend to business
    It’s very complex once you get involved with it
    Best of luck
     
    Posted: Feb 9, 2018 By: Maz Member since: Feb 1, 2018
    #6
  7. AutoLink

    AutoLink UKBF Newcomer Free Member

    Posts: 2 Likes: 0
    Speak to Key Mortgage Advice 01772 620000

    They do commercial mortgages and are a highly recommended firm.
     
    Posted: Feb 11, 2018 at 5:26 PM By: AutoLink Member since: Feb 14, 2013
    #7
  8. Mr D

    Mr D UKBF Big Shot Free Member

    Posts: 4,986 Likes: 484
    Will owning the shop & flat be a saving each month for the business with the cost of having the commercial mortgage?
     
    Posted: Feb 11, 2018 at 7:01 PM By: Mr D Member since: Feb 12, 2017
    #8
  9. Sunny Days

    Sunny Days UKBF Newcomer Free Member

    Posts: 20 Likes: 0
    Thanks for all the replies. We pay £1000 shop rent, the flat above achieves £800. I believe the mortgage would be approx £11-1200 per month for the whole building.

    Gordon - Sorry, I meant that moving would be a last resort

    Thanks for the recommendations... I will give them a call. If we can't buy now, we can get advice on how to set ourselves up best to buy next year.

    Thanks again :)
     
    Posted: Feb 13, 2018 at 10:47 AM By: Sunny Days Member since: Feb 9, 2017
    #9
  10. atmosbob

    atmosbob UKBF Ace Free Member

    Posts: 3,037 Likes: 671
    When I bought my industrial units I asked my bank and they came running.
     
    Posted: Feb 13, 2018 at 11:19 AM By: atmosbob Member since: Oct 26, 2009
    #10