Commercial Mortgage Advice – Short Leasehold Business Finance

Video Duration: 3:00

In today’s commercial mortgage advice video, Peter O’Grady talks about Short Leasehold Business Finance, and how we can help source this type of business finance.

It is not unusual for us to be asked for finance from Customers looking to buy retail outlets such as restaurants, small supermarkets, fish and chip shops, dry cleaners, care homes and so on. But, did you know that 5 million high street and other retail businesses are finding it increasingly difficult to source business funding, because they don’t own the freehold of the building.

There is a limited appetite for lending against high street leasehold businesses, yet demand grows every year for this type of finance. To help we have short lease hold finance providers on our panel with a variety of products available. One lender we use specialises in this business area, with funding options for both purchase and refinance. We now have the opportunity to provide alternative finance solutions to new and existing retail clients. It is a simple application process, each case is assessed individually, a quote can be issued same day in most cases and lending is governed strictly by affordability assessment of the business.

The business must have a minimum lease term of five years and normally need to have been trading for a minimum of thirty six months. Clients must be owner operators  or prospective owner operators, i.e. no investment business’s. Businesses must be located in major towns and cities and loans for this type of business are only available in England and Wales.

Certain other criteria will also need to be met including a minimum of 60% loan to value, a minimum loan size of £50,000 and a maximum loan term of either half the unexpired lease or 120 months whichever is the lower. In the case of refinancing, we are looking again 60% loan to value of the business with accommodation, a minimum loan size is £50,000 and a maximum loan term of either half the unexpired lease or 60 months whichever is the lower. Additional freehold collateral security is required for refinancing. These are the types of criteria that are required to be met and are no guarantee of acceptance.

As always it is advisable to speak to a professional expert when making any financial decisions, so speak to a professional when seeking any commercial mortgage advice, to ensure you get the best commercial mortgage rates for your personal or companies’ circumstances.

To get help today complete our online form at JustCommercialmortgages.com and you will be put in contact with a commercial mortgage expert, who can answer any questions you have and take you through all the options, to ensure you find the best commercial mortgage rates in this market place.

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