Residential mortgages are very similar to commercial ones, in that the commercial premises are security for the loan. So in Layman's terms, if you cannot keep up with your repayments, the loan is repaid by the lender selling the property and using the sale proceeds to cover the loan amount.
High inflation in the UK has meant that the prospect of rising interest rates is back in the spotlight. Rises in fuel and food costs have pushed inflation further above the Governments target and the Bank of England is now under pressure to raise rates. So, with possible interest rate hikes on the horizon, is now the time to remortgage?
Taking on a commercial mortgage is a bid decision for many small firms, in fact it could be said it is a rite of passage for many companies as they expand from small business status to something 'better.' That being said, it is still a decision to be well thought out and not taken lightly at all.
As the economy begins to recover, more and more people will be tempted by commercial property as an investment. However, whilst there are numerous positive reasons to choose commercial property as an investment, there are plenty of factors that you should bear in mind. Here are six things to think about if you are considering taking out a commercial mortgage to buy business premises.
Choosing the right commercial property solicitor can make or break your property deal. Just as finding the right commercial mortgage lender is key to financing your transaction, finding the right legal representation can be critical to a smooth purchase.
Getting on the property ladder can be tough. After ten years of house prices rising faster than wages, for many people buying has become less affordable. So, first time buyers have had to look for an even more imaginative way to buy their first home, sharing a mortgage!
Converting commercial property into residential units is a great way to profit from property investment. Whilst many investors take out a commercial mortgage with a view to owning the premises or renting it out to a business, many others buy with the intention of converting the property into a number of self contained residential units.