Commercial Mortgages

We provide commercial mortgage facilities for clients that wish to purchase or re-finance their business premises. At Advance, we work with owner-occupier clients across a broad range of service, commercial and industrial business types. Premises can therefore be for office, retail, light commercial, industrial businesses and haulage yards. We take time to get to know your operation and to fully understand your business model as we believe that funding business property is generally sought as part of a wider strategic business planning, rather than as a one-off transaction. Key considerations within evaluating lending proposals are the type, location and quality of the property to be financed, the sector, underlying usage and the trading performance of the borrowing business. 

Whilst every funding project will be different, there are some simple guidelines:

• Loan purpose: Commercial and Business Premises
• Loan amount: Up to £250,000 – £5M plus per transaction
• Loan term: From 10 Years, up to 20 years
• Loan Security: First legal charge, debenture (Shared priority with your existing clearing bank)
• Loan details: Fixed rates based on secured lending only – Straight line or structured profile with final bullet repayment.
• Loan to Value (LTV): Advance level between 60/70% of Valuation, Interest Cover, Debt Service Cover

Bridging Finance

A Bridging facility is typically a short-term funding solution provided by a lender on an interest only basis secured on property or land. There are many applications for utilising a Bridging facility, if you need to purchase a new commercial property before you have sold your existing one, or if you need to raise cash quickly to meet a creditor payment such as HMRC tax liabilities. Typically, funding on commercial properties can be achieved up to 70% of LTV with 100% funding achievable subject to extra security being provided. In some cases, certain financiers will base their lending conditions on the open market value of a property whereas others may only consider the 90 day “forced sale” valuation. Depending on the LTV, interest can be rolled up within the facility or, should the client prefer interest is settled as it falls due for payment. 

Another form of Bridging Finance is Development Finance which covers Developers and Developers Projects:

• Residential Development
• Commercial Development inc Mixed use – Residential Development
• Conversions and Refurbishment Projects inc Planning Gain
• Facilities Range From: £0.5m to £15m on Terms Appropriate – Usually on periods 1 to 24 months
• Facilities usually Provide 100% of Construction Costs, Professional Fees and Interest inc a Contribution to Site Purchase
• Borrowers should have Appropriate Expertise and Financial Standing