Introduction to Accounting & other related commercial services
If you are seeking to finance the purchase of land and/or buildings for your business, a commercial mortgage will probably provide the most flexible and affordable financing solution.
A commercial mortgage is a specialised commercial loan, and as such, the lender has a legal claim over the property until the loan has been fully repaid.
As with a residential mortgage, the commercial lender can hold the title deeds to the property as security. In the event of arrears the mortgage lender can repossess the commercial property.
A business owner who wants to fund his/her premises may use an 'owner occupied' Commercial Mortgage.
Buying commercial premises can be a good investment but before you commit, it is important to consider carefully the pros and cons.
- A fixed rate mortgage means you will have predictable monthly repayments
- The repayments are likely to be similar to a rental payment on the same property
- You are protected from any sudden rent increases
- Interest payments on the commercial mortgage are tax-deductible
- Possibility to sub-let any free space, reducing your monthly repayments (lenders permission may be required)
- Potential gain in value of the property