House / Flats and Plots Commercial Loans
Commercial loans can give you the developer/builder a commercial propriety loan to build:
- A single house.
- Two semi houses.
- Block of flats.
- Start to finish on a drawdown bases.
This is an area our commercial lending experience is excellent.
A commercial business loan can also be given to assist in the purchase of the plot/land as long as it has some type of planning consent either given or imminent.
Commercial loans for all types of development are one of the areas that we specialise in.
A very common requirement for a commercial loan is funding for buy-to-let properties. Short term finance is usually required from a specialist commercial lender because:
- most high street lenders will not provide buy-to-let mortgages until the property has been owned for at least 6 months.
- most high street lenders will only provide a buy-to-let mortgage if the net rentals cover the interest payments by a factor of at least 125%.
- most high street lenders will not lend on unoccupied rental properties or properties that require renovation work prior to being put on the rental market.
Commercial Loans Ltd can provide funding in all of the above circumstances. We may, in addition to financing the purchase price of the buy-to-let property, be able to lend a proportion of the refurbishment costs. Once the property has been renovated and let out, you should be able to obtain a long term mortgage to replace the bridging loan.
Very often a buy-to-let mortgage will have been purchased at auction. A 10% deposit is usually payable on the day of the auction, to secure the purchase, with the balance of the cost being payable within 28 days. This does not give the purchaser much time to arrange funding, but with the help of Commercial Loans Ltd, funds can be made available for the purchase to be completed on time and without penalty or forfeit of the deposit.