What is a Commercial Mortgage?
A commercial mortgage is any loan secured on property which is not your residence. Buy to let mortgages are a special type of high volume commercial mortgage which is packaged for a volume market. But since almost every other kind of premises are different, each loan has to be assessed individually and priced according to the risk.
When are commercial mortgages used?
Commercial mortgages generally take over where business loans finish. Business loans up to £25,000 are unsecured, but for larger amounts lenders need security in order to reduce the risk to themselves.
The world of Commercial Finance has always been a complex and specialist area. Enquiries to that might, at first, seem quite straightforward, can often go off the rails during processing if not placed with the ideal lender from the start. Months might be lost, and transactions may even fall through as a result, if these types of loans are not handled entirely correctly, from the start, by experienced experts.
We refer will you to a broker company with in-house specialists who live, sleep and breathe commercial finance, with access to a vast range of lenders who cater for almost any commercial finance requirement.
The brokers service is designed to relieve you entirely of the extensive leg-work necessary when placing any specific case, and to ensure your application is packaged and processed precisely how each lender requires it, so as to reach an Offer as swiftly as possible.
The broker offers a Client Advice Service for Commercial Mortgages, where a commercial expert will pick the case up directly with you, and deal with it all, from the start, through to completion.
The following gives you an idea of the types of of commercial solutions we are able to source for you:
- Loans from £25,000
- Term from 3 to 30 Years
- Up to 75% LTV
- Interest Only options available
- Limited Company borrowers
- Owner occupied and Investment loans
- Rates linked to BBR or *LIBOR
- Investment properties let on short leases or licenses
In terms of Property Types, all of the following are possible:
- Retail Shops
- Offices
- Industrial Units
- Warehouses
- Hotels and Guest Houses
- Restaurants
- Care Homes
- Nurseries
- Farms
- Doctor or Dental Surgeries
- Veterinary Practices
BTL Wrap Service
Designed to assist Landlords in making the most tax efficient decisions regarding their next BTL purchase, given the changes coming to BTL Tax Relief from April 2017 onwards.
To help mitigate these changes there are several advantages in setting up a Limited Company, but there are disadvantages too, so it won’t be right for everyone. It is therefore crucial that Landlords are fully informed, and professionally advised, before making a decision…
Existing Landlords
- Given the BTL tax relief changes from April 2017, Landlords (with existing property portfolios) may prefer to operate through a Limited Company going forwards, but most believe they cannot do so without incurring hefty CGT and SDLT bills.
- Landlords already managing property portfolios as a “business” may well be able to incorporate without giving rise to any Capital Gains Tax (CGT). In addition, where the business has been operating as a Partnership, they may also be able to incorporate without giving rise to any Stamp Duty Land Tax (SDLT) either.
Capital Allowances Reclamation
…for Commercial Property Owners
80% of all commercial property owners are unaware they are entitled to what are often very significant Capital Allowances in relation their property purchase (whenever it was purchased).
Black Book has partnered with one of the UK’s leading specialist firms to provide your clients with a FREE AUDIT of their commercial property, in order to assess entitlement.
If it transpires there are no claims to be made, or if there are, but HMRC does not formally agree to them, there is NO CHARGE for this service – so no downside whatsoever in finding out. In many cases our Partner has uncovered Capital Allowances equating to 20%+ of the original purchase price
What is changing?
From April onwards BTL Tax Relief is to be reduced. On a sliding basis, from April 2017 to April 2020, the amount of Buy to Let tax relief that Individual Landlords can claim back will be progressively cut, from the current maximum of 45%, down to just 20% for top rate taxpayers.
The Small Print. Optimate Consulting Ltd is an administrative hub, processing client applications on behalf of our business partners. As a result of this, we are registered with the Information Commissioner’s Office. We are not regulated by the Financial Conduct Authority (FCA). We do not promote regulated products to the public or provide any form of financial advice on investments or pensions which are regulated by the FCA we will refer you to a suitably qualified person. Should you require Financial Advice, we recommend you contact your Financial Adviser. If you do not have a Financial Adviser we recommend you search the Financial Services Register to find an authorised firm that meets your requirements. If you require assistance on the completion of an application, please feel free to contact us. Optimate Consulting Ltd is a company registered in England and Wales company no.10249349, registered address Unit 8 & 9, Parsons Court, Welbury Way, Newton Aycliffe, County Durham DL5 6