Funding your commercial property purchase

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Funding your commercial property purchase

There are many different forms of finance available for funding your commercial property purchase, depending on your business circumstances and requirements.

If you are looking to expand your property portfolio, upscale your warehouse facilities or purchase business property, the right finance product is available to suit your needs. This is our simple guide to the types of commercial property finance available to you.

Commercial mortgages

Regardless of your commercial status (company director or sole-trader), there are many commercial mortgage products available to you. Lenders commonly lend up to 75% of the property value on anything up to 30-year terms. Secured against the first charge, this lending is based on your business’ ability to make monthly payments and your projected profitability.

Portfolio lending

If you have many properties in a property portfolio there is lending available that will allow you to consolidate your lending into one loan. Based on the income you receive from the rental properties this is considered as a long-term financial commitment.

Bridging finance

As a speedy, and short-term, solution to secure a property purchase bridging finance is a favourite with developers and property investors. After taking a first payment on the purchase, the lender will seek to exit at the end of the loan.

Auction finance

You don’t want to head into a property auction without having the correct funds at your disposal, and this form of finance ensures that doesn’t happen. There’s a reason that the most experienced property developers and landlords regularly use this finance to fund their auction bids – it provides the fund to bid with confidence and protects you financially.

Development finance

This is where a lender will lend up to 70% of the costs, on a new building or refurbishment project, on terms of anything up to 24 months. This is a short-term financial fix to get your development work up and running and completed to a high standard.

The right commercial property finance options for you

It is worth exploring the finance products available via our partners Commercial Finance Arena. They are experts in the property finance field with a range of mortgages and finance options for buying premises.

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