Adelpha

Commercial Mortgage

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Adelpha Finance can quickly arrange term commercial funding for residential, semi-commercial and commercial property throughout the United Kingdom.

 

Commercial mortgages, sometimes called a business mortgage, is a loan that is secured against a property. It can provide funding for a variety of property acquisitions and to raise cash. Examples include:

• Buying a premises for your business.

• Buying an additional premises or land to expand your business.

• Buy business premises or land for further development (this could be a brand new-build, conversion or refurbishment of your current space).

• Buy a commercial or residential property to let out for profit. 

• Raise cash with a mortgage on land or buildings you already own – and use it for any purpose.

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Commercial mortgages work by securing a loan against the value of your premises. The loan to value (LTV) ratio is up 75%, meaning a 25% deposit is required. Some lenders may be able to use equity in other property to make up a shortfall in a deposit, although the majority would expect a cash contribution to be made.  

 

Similar to residential mortgages, interest rates can be fixed or variable. They vary across the market with factors including the amount of the deposit, purchase price and your company’s financial position. Interest payable on the loan is tax deductible.  

 

The term of the loan can be up to 30 years with both interest only and capital repayment options available. Should the property be a leasehold, the length of the lease remaining will need to typically need to be more than 80 years. 

 

The costs associated with securing a commercial mortgage can be higher than other loans with valuation fees, legal fees, commitment fees and arrangement fees payable to the lender.  

 

Because of these costs, the lower end of the amount you can borrow will be around £50,000, otherwise it becomes uneconomical given the costs.