r j f mortgages
commercial mortgages
Welcome to the commercial mortgage area of our website. This is the section for you if you‘re looking for a business mortgage to purchase your premises or if you’re a commercial property investor looking to finance either a purchase or remortgage. Please be aware our commercial mortgages section doesn’t include rate information because in most cases rates are determined on an individual basis based on the strength of your proposition. To assess the rate you’re likely to pay, please contact us and we’ll chat through your proposition to target the right choice of commercial investment mortgage for you.
Within our commercial mortgage pages you will be able to find out about all the different industry sectors which we can help assist you in including :
Leisure property mortgages
Semi commercial mortgages
Retail - commercial property investment
Office property mortgages
Industrial property mortgages
Care home mortgages
Professional property mortgages
Agricultural mortgages
Leisure property mortgages
The leisure sector covers a number of business premises including hotels, guest houses, public houses, nightclubs, golf clubs, restaurants and many more.
Borrowers looking for leisure property mortgages can expect to pay Bank Base Rate + 2.5% to 4%, and put down a deposit of 25% +.
To achieve more favourable lending rates and terms, experience in your chosen leisure sector is essential, as is a detailed business proposal.
It is important to consider that some parts of the leisure sector are viewed by many financial institutions as high risk lending opportunities, limiting the funding options in many cases. However as the majority of our partners commercial mortgage consultant team is made up of ex bank managers who are well used to dealing with leisure based commercial mortgages, from small bistros to large central London nightclubs, the borrower can be assured we will negotiate competitive funding based on the proposition.
There are numerous opportunities in leisure based property investment from small public houses to large London casinos, we’ve dealt with leisure investment property finance across the spectrum. Due to our experience in this field we are acutely aware of what is achievable given your circumstances and proposition.
Semi commercial mortgages
Semi-commercial properties will be treated by financial institutions purely as a commercial mortgage proposition despite a certain percentage of the transaction involving a residential property element.
Examples of semi-commercial will include a shop with a flat above it or a residential property that has partly been converted into a public house. Here the purchaser will be buying the complete unit, i.e. the commercial and residential elements.
We can help provide the finance of all these sorts of transaction, whether it is a car showroom with a luxury apartment above or a fish and chip shop with a small studio flat above.
Increasingly we have seen property investors moving into commercial property, many of these investors will have formerly been Buy to Let property portfolio investors. For the majority of Buy to Let investors their first step into commercial investment will be via semi-commercial properties i.e. a property with a residential (Buy to Let only) and commercial element such as a retail unit with a flat above it.
For further information please drop us a line.
Retail - Commercial property investment
There’s likely to come a time when you consider replacing the uncertainty of renting with the stability of owning your premises, this is the time we can help. We can also help if you’re an investor considering purchasing a shop unit.
We’re well equipped to deal with your vast and diverse range of commercial mortgage needs if you’re purchasing a retail premises as a company or sole trader. We’ve significant experience in dealing with everything from small newsagent purchases for sole traders to large retail complexes for large companies.
The majority of our consultant team is made up of ex bank managers who are well used to dealing with retail commercial mortgages, from multi million pound propositions in central London to smaller sole traders making their first small steps into owning their premises.
The maximum loan to property value for a retail commercial property purchase will be between 70% and 75%. However this loan to value will be affected by the business trading performance and your own personal experience in running a retail business. Similarly the mortgage headline interest rate will be affected by these variables and the rate will typically vary from Bank Base Rate + 2.5% to 4%. Evidence of trading accounts and a business proposal will be needed in order to secure competitive funding.
For the retail property investor the mortgage rate and terms will be determined by the strength of the retail tenant who is occupying the property.
We look forward to discussing your retail mortgage needs with you.
Office property mortgages
There are numerous reasons why an office purchase may become necessary, perhaps a small business has rapidly growing operations meaning they now need premises or at the other end of the scale a director of a large organisation may be looking to relocate its corporate headquarters. Whatever the office purchase mortgage requirements, we can cater for them.
Our specialist team represent hundreds of years of experience in funding office purchases, from large office blocks in London Bridge to small square footages of floorspace for business start ups. Our office property market know-how means we’re acutely aware what is possible given your particular circumstances and we will be able to negotiate an extremely competitive mortgage rate for you.
Borrowers wishing to purchase an office as a business premises or investment can expect to pay Bank Base Rate + 2.5% to 4%, generally at a maximum loan to value of 75%.
Industrial property mortgages
We negotiate highly competitive mortgages for industrial property mortgages including factories, warehousing, industrial and storage units, workshops and more.
We have extensive experience in dealing with industrial property purchases from funding a computer games manufacturer’s large factory unit in the South west to far smaller mortgages on industrial units in a variety of sizes in industrial estates across the UK.
As a rough estimate borrowers can expect to pay Bank Base Rate + 2.5% to 4% and a maximum loan to value of 75%. Mortgage rates and terms will be determined by the strength of the tenant in an investment property or the strength of the business in the case of owner occupation.
Care home mortgages
There has been an increasing trend in the last decade for care and nursing homes to be run independently by private individuals and small limited companies, whilst the majority remain under large corporate ownership.
Financing tends to be made easier if the property has 40 plus beds, has lift facilities and all the rooms are en-suite, however we can still arrange funding if this is not the case.
In general, loan to property value for care homes tend to be between 70% to 75%. The care home mortgage term will be between 20 to 25 years and the rate you can expect to pay in the region of Bank Base Rate + 2.5% to Base Rate + 3.5%. Rates will be determined by the financial performance of the care home and the previous experience of the business proprietor. Lender fees of 1% to 1.5% will apply.
We have excellent experience in the care home mortgage sector and acutely aware of the factors that affect the lending decision, call us for further information.
Professional property mortgages
Commercial mortgages for professional premises incorporate a number of diverse businesses including accountants, general practitioners, veterinary surgeries, solicitors, dentists and more.
We’ve funded private surgeries from those in Harley Street, London to small private solicitors' practices around the UK. Due to our knowledge of the market, you can be assured we will secure the best possible rate and lending terms given your particular status.
With regard to rates a good benchmark to consider would be Bank Base Rate + 2% to 3.5%. Evidence of trading accounts and a business proposal will ideally be needed in order to secure competitive funding.
The maximum term of a professional business mortgage will tend to be 30 years
Agricultural mortgages
We understand running an agricultural business is extremely time consuming whether the business is a farm or groundscare based, however we take the time to find the right commercial mortgage for you given your personal circumstances and how you see your agricultural business developing in the future.
We have wide ranging experience in dealing with agricultural land and buildings investment for a number of uses. In many cases a hands on approach is essential in agricultural investment funding and we will be happy to visit the site of investment to get a better idea of the mortgage rates and terms that are achievable for a particular proposition.
The maximum loan to property value on agricultural properties on a good proposition will be around 75%.
Agricultural owner occupiers will ideally require evidence of trading accounts and a business proposal will ideally be needed in order to secure better rates of funding. For agricultural investors the tenant will be the main influence in the funding decision and the better the quality of the tenant the better the terms of the commercial investment mortgage.
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Not all forms of commercial mortgages are regulated by the Financial Services Authority
The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
