
Commercial mortgages & remortgages
For expert guidance regarding commercial mortgages and remortgages, contact Cleaver Thompson Solicitors in Alfreton and Clay Cross.
Commercial or business mortgages
Mortgages are simply loans that are secured on property. A commercial mortgage (sometimes called business mortgage) is secured on any property that is not residential.
TWO MAIN CATEGORIES
Commercial mortgages can be split into 2 main categories; an owner-occupier mortgage, where you are planning to trade from the premises you are buying, and a commercial investment mortgage, where you buy property to make available to rent. Commercial mortgages differ from residential mortgages in a few ways - there are no fixed rates, usually a higher rate of interest and a higher deposit (usually around 30%). However the interest on a commercial mortgage is tax deductible.
Accurate and comprehensive information
It is possible to get a business loan of up to £25,000, and these are unsecured, so there is no risk of losing property. However the interest rate on a loan is higher, as lenders have no security. There are various fees payable to arrange a commercial mortgage, such as arrangement, legal, valuation and broker fees. Make sure you have all the information you need so you can accurately judge whether you can afford the mortgage.
A limited company
If your business is a limited company, then a lender may require a personal guarantee. This is a guarantee from the borrower that they will pay the loan back from their private assets, such as a home or cash. This provides the lender extra security in case the limited company goes bust. A content legal charge is similar in that it pledges a property against the value of the loan, so the lender can take the property if the loan is defaulted.


DO YOU NEED TO KNOW MORE ABOUT COMMERCIAL MORTGAGES OR REMORTGAGES?
Call the property finance experts at Cleaver Thompson Solicitors in Alfreton and Clay Cross. We can also help you with business sales and purchases, plus sale of commercial property and purchase.
ALFRETON OFFICE
5 & 7 King Street, Alfreton, Derbyshire, DE55 7AE
Tel: 01773 301858
CLAY CROSS OFFICE
6a Eyre Street, Clay Cross, Derbyshire, S45 9NS
Tel: 01246 865048