Commercial mortgage - any recommendations please?

[Sunny Days]

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.

 

[Gordon - Commercial Finance]

we have some equity in our home which would be enough for a deposit on the commercial premises

Are you going to sell your home to release this equity or are you looking to keep the home and withdraw the equity?

 

[Sunny Days]

I really don't want to move home, so withdraw equity if it's at all possible. TBH, we're looking for options/ideas.

 

[Mark T Jones]

Are you going to sell your home to release this equity or are you looking to keep the home and withdraw the equity?

Talk to him

 

[Gordon - Commercial Finance]

This could mean moving into the flat above

I really don't want to move home

Bit of a contradiction but ok.

 

[Maz]

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

 

[AutoLink]

Speak to Key Mortgage Advice 01772 620000

They do commercial mortgages and are a highly recommended firm.

 

[Mr D]

Will owning the shop & flat be a saving each month for the business with the cost of having the commercial mortgage?

 

[Sunny Days]

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

 

[Deleted member 59730]

When I bought my industrial units I asked my bank and they came running.