Commercial Investment Finance
What is Commercial Investment Finance?
Commercial Investment Finance is a type of funding that is required and used to purchase or refinance a commercial, or semi-commercial property which is let to tenants, mainly professionals.
With our vast experience we are able to source solutions for all types of commercial properties with loans starting from £30,000, to facilities well over £150,000,000.
Property types are often grouped as follows:
Hospitality:
Restaurants, Take-Aways, Café’s, Pubs and Night Clubs
Professional:
Dentist Surgeries, Doctor Surgeries, Veterinary Practices , Physio Therapists, Nursery/Day-Care, Solicitor Practices, Accountancy Practices
Leisure:
Hotels, Guest Houses, Bed and Breakfasts, Apartment Hotels, Holiday Lodges/Parks, Golf Club Holiday Lodges
Main Stream Commercial:
Retail Units, Retail Parades, Retail Parks, Shopping Centres, Serviced Offices, Industrial Units, Warehouses, Offices, Office Parks, Semi-Commercial Parades and Short Term Storage.
Specialist Property:
Agriculture & Farming Estates, Caravan Parks, Petrol Stations, Car Wash Garages and Commercial Land.
Useful Information
Take a look at our Useful Information section for some extra guidance and insights about what you are requesting.
Lending Options
High Street Banks
- Typical Terms: Full or Partial Repayment with a maximum loan to value of 75% (typically 65%). Terms often capped at 5 years.
- Affordability: based off of the gross rental income minus 20% for costs.
- Leases: Minimum 5 years. Licenses more tricky.
- Tenants: A preference towards multi-let units (except for ftse 100 tenants or professionals with long leases).
- Payment Structure: Capital and Interest Payments either monthly or quarterly. (Interest only: sub 40% LTV).
- Investment Finance: Commercial units need to be ready to let i.e., not under construction
- Favoured commercial assets: warehouse/industrial, supermarkets, fast food outlets, retail parks, coffee shops and restaurants, large shopping centres and hotels (let to good tenants, on long leases, in prime commercial locations).
- Security: typically require a debenture over a limited company and sometimes personal guarantees.
Specialist Banks
- Typical Terms: Full, Partial and Interest Only Repayment with a maximum loan to value of 75% (typically 70%). Terms up to 25 years.
- Affordability: based off the gross rental income. No costs deducted.
- Leases: Minimum 2 years. With the exception of licenses where they will look at the average occupancy level and how long tenants have been in place.
- Tenants: Single tenants and Multi-let units considered.
- Payment Structure: Either interest only, capital and interest or partial payments made monthly.
- Investment Finance: Commercial units need to be ready to let i.e., not under construction
- Favoured Commercial Assets: Lenders in this space will consider all types of commercial property and are not as selective as the high-street banks.
- Security: Typically these banks require no debentures but will in some cases ask for personal guarantees.
Next steps …
We have a lot of expertise in sourcing Commercial Investment Finance for our clients, simply take a look at our Case Study section for examples or contact our team today so we can talk to you further about what you need.