Property Finance

Property is one of the biggest purchases your company will make. Ensure you fund this in the best way possible

Purchasing a property, whether for business or personal use, is likely to be one of the biggest purchases you will ever make. Due to this many choose to obtain finance to help facilitate the acquisition. Whether you are a business owner or a property developer, purchasing a property for commercial use is typically done using either a commercial mortgage, or a bridging loan.

• Commercial mortgage – Commercial mortgages work in much the same way as residential mortgages. The mortgage company will agree to advance you a set percentage of the value of the property being purchased, with the remainder being paid up front by the purchaser in the way of a deposit. The mortgage will then be repaid through a series of monthly instalments over an extended period of time. If you are a business owner looking to purchase trading premises, you can typically borrow up to 75% of the property’s value; for property developers purchasing an investment property, the amount able to be borrowed is lower at around 65%
• Bridging loan – A bridging loan is a short-term funding option which is used to ‘bridge the gap’ between your current financial position, and the position you will be in a few months’ time. Bridging loans typically last between 3-6 months and you must have a definite way of repaying the funds at this point. Bridging loans are often taken out to fund a renovation project or the build of a new house. The loan is then repaid through the sale or re-mortgage of the property.

Commercial property finance is available to both company’s and sole traders. Both your company and also the property you are obtaining the loan against will need to meet certain conditions, however, the exact criteria does vary between lenders. We can scour the market to help secure the right property loan at the right price for you and your company.