Commercial Property Finance

Buying commercial property is an important investment for any business - and real estate is often the principal asset upon which the success of the business depends.

Many banks and finance houses will provide mortgages or loans against the security of commercial property, but there are different principles for assessing and accepting applications for a mortgage Principally, these are:

• Prime - Prime lenders will not normally provide loan facilities simply based on the LTV [Loan to Valuation] on the property. They will want to be assured that the loans can be comfortably serviced via the borrower’s day-to-day cash-flow.
• Sub-prime - Sub-prime mortgage applications are based primarily on the Loan To Valuation on the property, with less emphasis placed on the need to service on-going repayments.

Finance can be structured by way of a mortgage over a specified period, and interest charges (normally higher for Sub-prime finance providers) will usually reflect the lender’s perceived risk. Terms can also be structured to match individual requirements, and include fixed, variable or capped interest rates, interest-only repayments - plus flexible repayments, which are particularly appropriate for seasonal businesses.

Property Development Finance

Designed for the acquisition of land and buildings, Property Development Finance can also be used to support special projects such as new-builds, improvements or refurbishments. Finance can be arranged to cover entire projects, with monies being released against agreed development milestones or certifications.

Bridging Loans

Designed to provide short-term finance secured against property, Bridging Loans are normally available for periods of between three and 24 months - and funders will usually insist on the borrower having a well defined strategy for repayment at the end of the term.

At BTG Commercial Finance, we have excellent contacts with a range of well established funding bodies that can provide flexible property-based finance to match a wide range of borrower requirements.