Business finance can be made available on diverse property-sets. This can include offices, pubs, restaurants, shops, hotel, industrial manufacturing units, and factories and so on. Commercial mortgages have theirs own intricacy though. A simple residential mortgage is pleasantly deprived of any kind of complex transaction. Business finance often indulges in a lot of scrutinizing.
Business finance does not exhibit the flexible and competitive cost structure as witnessed in the residential mortgage market. Lenders are just getting adapted to the new techniques of fixed rate money for small and medium size enterprises.
Even those businesses which have sole traders or are defunct or have a bad credit history need not worry hugely. A scheme or another is always available which makes money borrowing possible for such units.
Many top of the line advisors help with counseling and offer suitable advice. Their services are paramount before entering a deal. They speak of the do’s and don’ts in clear parlance’s. For instance, they suggest the importance of not blocking money with dead plots.
Commercial mortgages can allow borrower to get up to 85% of property value financed. Borrowing amount can range between 25000 pounds to 5000000 pounds. It is a self certified loan and generally need attestation from the borrower for a possible default scenario. Though the sub-prime crisis in US has made the lenders a little more discerning, bad credit profile customers are still finding it easy to gain access to such loans.
Approval or rejection is meted out immediately, which implies the borrowers do not have to suffer from having to wait to be informed about the fate of their application.
Commercial mortgage units can be also put on rent. This makes them partially exempt from the Capital Gains Tax. The clause is simple; the properties can only be let out for commercial purposes. In distant or proximal future, when an owner feels like selling the property, he will have to consider the price fetched as gross.
Net price can only be traced after clearing away the mortgage debts, subtracting the 15% down payment and further subtracting the Capital Gains Tax. Buy to let commercial remortgages can help an owner pay his EMI’s through the rent receipts.