Commercial buy to let mortgages
Commercial mortgages are designed to enable a business to purchase a new or remortgage an existing premises that will primarily be used for business purposes. The property can be used as its business premises or may be an investment whereby it is intended to let out all or some of the building.
These type of funding arrangements are seen as more complex than residential or traditional buy to let ones and as such it is important to work with a mortgage broker who has experience within this market.
At Key Solutions we have specialist advisers who understand the structure of these types of arrangements and have access to lenders with an appetite in this market.
If you are looking for a commercial mortgage to purchase or remortgage your business premises our team will be happy to offer you specialist guidance and support.
How does a commercial buy to let mortgage work?
Generally requiring a deposit of approximately 25%-40% of the total property value there are a number of additional terms for a commercial buy to let mortgage which include:
- Occupancy – a lender will usually need a tenant to already occupy the property or at least for one to be signed up and ready to move in.
- Income – like a residential buy to let a lender will base their decision on the rental income the property will achieve. However, the lending decision will also include the borrower’s net asset position and experience of owning and letting commercial property.
- Tenancy – lenders will look at the business that will occupy the property and the tenancy agreement that is in place, on average a lease of 10 years or more.
Making it easier for you to purchase your commercial buy to let property
At Key Solutions we have secured commercial buy to let mortgages across a wide range of properties including:
- Commercial units with a residential flat above
- Offices and retail premises
- Industrial units, factories, and warehouses
- Licensed houses of multiple occupation (HMO)
Give our team of commercial specialists a call for some expert advice on 0800 138 5856 or complete our contact form and we will respond within 24 hours.
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