Commercial Mortgages

For many businesses, both large and small, one of the biggest decisions to be made is whether to buy or lease

There are many advantages in buying commercial property over leasing although there is often far more commercial property available for lease than purchase so finding somewhere to buy in the right location could be the first problem to overcome.

Once a suitable property with the appropriate permissions for the business use is found, there are many competitive commercial mortgages available today, and repayments could well be similar to rental outgoings or maybe even cheaper. The added bonus is that over time, hopefully the value of the asset will increase to provide a capital gain. Maintenance and refurbishment costs need to be taken into account, however when leasing, the terms of many commercial leases often mean the tenant is responsible for these costs despite not having ownership of the property. Mortgage interest payments are tax deductible and it may also be possible to sub-let space not being used, with the lender’s approval to provide further income. The property can always be sold at any time in the future while many commercial leases are very long term and there may not always be an option to end the agreement early if circumstances change.

A commercial mortgage can be used for many different types of venture such as the acquisition of business premises, commercial and residential investment, property development or expanding an existing business.

Due to the specialist nature of commercial finance, these enquiries are dealt with by our associated company, London Commercial Finance who can be contacted on: -

020 8536 2927

www.londoncommercialfinance.co.uk

It should be noted that commercial mortgages are not regulated by the Financial Services Authority.