Commercial mortgage

[makeupartistzoe]

Hiya Geeks,

I'm 3 years into my 10 year lease and I'm totally loving it. I chose a small shop so my rent, rates and bills wouldn't consume me. It's grade 1 listed, big window and natural light in the basement room. It's very close to main a main shopping area, near a car park, foreign language school, primary school, nice restaurants and bus route...

My landlord has been hinting that he wants to sell ( he's getting to 70) and has estimated the shop at 80k. It's got damp in the basement which would cost 12-15k to fix so I would love to offer him 60k and then fix things up and have it as an investment as well as paying back a mortgage which would be half than my rent!

My profits aren't amazing though...but if I show my accountant kept accounts that show how much rent I've been paying for the shop for the last 3 years and my turnover, do you think I could get a mortgage?

There's no point dreaming if I can't get the money. If I could then I'm a sensible bunny and would get a full structural survey etc..

Anybody know where to start? Xx

 

[taggyboy]

Have a chat with your bank manager. He may want to see a business plan, despite you being in business for a while. Try a couple of banks. You may need some kind of deposit or even a guarantor and take along up to date accounts.

Good luck

Debbie x

 

[pinkthistle]

The bank can give you an idea over the phone in about 10mins, its conditional and they will want a commercial survey done which are around £300, there is also a bank charge for setting up the loan, mine wanted £500 for a 65k loan. Then they will email or send you the paperwork to fill in with accounts etc.

 

[eternalscot]

Do it if you possibly can I remember paying quite a high deposit for mine, but it was well worth it, it's your pension. You can actually put in into your pension ask your accountant definitely do it! Secures your business and future and now is the time to snap up commercial bargains.

 

[makeupartistzoe]

Thanks geeks for the positive remarks. My natwest business manager has now moved and doesn't offer customer facing appointments anymore. Chatting to the business development team they have said I need 50% !

Pink Thistle, who do you bank with please?!

 

[eternalscot]

This is very true even in the good old days of the early 00s it was 40/60 on commercial mortgages. You should not need a commercial surveyor only a buildings surveyor, as it is not a business but property you are buying, buying good will or a lease is another matter then you need commercial surveyors to look at the financial risk. How much are they asking for the property? Can you get a financial leg up from family? Even paying it off it is still cheaper than renting and it makes it easier to sell your business afterwards, try try try and find a way. Financially this is an opportunity you cannot walk away from also knock down the landlord a few grand and tell him that is your limit and plead, it's your pension. Too many people spend a fortune on their businesses premises and lose track of how their business should have assest. What is McDonald in the business of? You may say hamburgers this is not true it's is real estate they own prime sites around the world, it's their biggest asset. Buying as opposed to renting is looking after your future. To be honest though if your single and self employed pretty much all mortgages used to be 40/60 which suited me fine, as it meant you could just self cert yourself, now getting a mortgage is much harder, doesn't matter how large you deposit they want to know all your business. I have friends who in capital own 4 houses outright and are worth several million yet they have to cook the books to get mortgages to move house yet really the banks could not have a safer bet. It was due to a few living well beyond their means and speculating on the property market, we all suffer as a result!

 

[MrsHBeauty]

This is very true even in the good old days of the early 00s it was 40/60 on commercial mortgages. You should not need a commercial surveyor only a buildings surveyor, as it is not a business but property you are buying, buying good will or a lease is another matter then you need commercial surveyors to look at the financial risk. How much are they asking for the property? Can you get a financial leg up from family? Even paying it off it is still cheaper than renting and it makes it easier to sell your business afterwards, try try try and find a way. Financially this is an opportunity you cannot walk away from also knock down the landlord a few grand and tell him that is your limit and plead, it's your pension. Too many people spend a fortune on their businesses premises and lose track of how their business should have assest. What is McDonald in the business of? You may say hamburgers this is not true it's is real estate they own prime sites around the world, it's their biggest asset. Buying as opposed to renting is looking after your future. To be honest though if your single and self employed pretty much all mortgages used to be 40/60 which suited me fine, as it meant you could just self cert yourself, now getting a mortgage is much harder, doesn't matter how large you deposit they want to know all your business. I have friends who in capital own 4 houses outright and are worth several million yet they have to cook the books to get mortgages to move house yet really the banks could not have a safer bet. It was due to a few living well beyond their means and speculating on the property market, we all suffer as a result!

I agree with what your saying 100%

And to add the the end bit. My dad owns 7 properties and only owes less than £60k they have value of around £1.2m but trying to borrow £75k for a commercial property is proving to be almost impossible! He earns a good amount from his own business where he employs 4 staff members full time and has a proven track record for 27 years. It's infuriating for him and for me as we are trying to buy a big property to move my beauty salon and add a hairdressers and training room aswell.

Trying to borrow money is a nightmare and a very long process. We've been going since march this year.

But hopefully it will all be worth it.


Jemima