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Securing the right funding on the right terms can be essential for property investments, developments and other commercial property ventures. Our commercial property finance solicitors in Orpington, Dartford and Bexleyheath can help you to get favourable funding deals in place while keeping you safe from any potential risks.
We can assist with all aspects of finance for commercial property, including advice on lender requirements to increase your chances of securing the funds you need, drafting and reviewing finance terms, and advice on personal guarantees.
You can rest assured that everything will be explained to you in plain English and any possible areas of risk will be carefully assessed so that the right protections can be put in place. This way, you can be confident of securing the finance you need on the best terms for your overall commercial interests.
The team at T G Baynes can assist with different types of finance for commercial property including:
- Commercial property development finance
- Commercial property investment finance
- Buy-to-let finance
- Bridging loans
Contact our commercial property finance solicitors in Orpington, Dartford and Bexleyheath
To speak to one of our commercial property lawyers in Orpington, Dartford and Bexleyheath, please fill in our simple enquiry form or call 020 8301 7777.
Our commercial property finance fees
To discuss our fees or to request a cost estimate, please get in touch using the contact details above.
Our commercial property finance services
Commercial property development finance
Most commercial property developments will be funded by borrowing, and getting the right terms in place is important to facilitate a smooth development. You will need to be realistic about the amount required and the schedule of development. Typically, the money will be released in stages as you reach different milestones, so it is important to plan this carefully so you do not run into any funding gaps.
Commercial property investment finance
Finance for commercial property investments can come in many forms depending on the type of investment. If you are investing in property for your own use, then you can secure a commercial mortgage. Alternatively, other options, such as buy-to-let finance and bridging loans (both covered below), may be more suitable.
Buy-to-let finance
Commercial buy-to-let finance can be used to purchase property for rental purposes. They are typically used by limited companies that are investing in commercial rental properties such as office and industrial premises.
Buy-to-let finance often has longer loan terms than other types of commercial property finance but you will need to be able to demonstrate that the rental value of the property exceeds the loan repayments by a margin set by the lender.
Bridging loans
Bridging loans are a type of short-term finance that typically needs to be repaid within 12 months. They are used to ‘bridge’ a funding gap, e.g., where you need finance to purchase a property and carry out improvements to increase its value before taking out a longer-term loan.
A bridging loan will normally have to be secured against an asset and can be used where other funding types are unavailable. They tend to have higher interest rates than other types of commercial property finance, so it is important to consider this and the risk of not being able to secure replacement finance before taking out a bridging loan.
Commercial property finance FAQs
What is commercial property finance?
Commercial property finance is any form of funding used for purchasing, improving, developing or otherwise investing in property that is entirely or primarily used for commercial purposes. This can include finance for residential development where a commercial developer is carrying out the project.
Commercial finance will usually be secured against the property or other assets. It might be delivered in a single payment (e.g. when buying a property) or in stages (e.g. when a property development reaches various stages of completion).
What types of property qualify for commercial property finance?
Many different types of property can be suitable for commercial property finance, including development sites, retail, office and industrial premises. For secured finance, the property will generally need to have a value higher than that of the finance being sought, or the loan will need to be secured against other assets.
What are the typical loan terms for a commercial property?
Commercial loan terms can vary significantly as can commercial property finance rates. In general, the terms tend to be shorter than for residential mortgages with a typical repayment term being 5-20 years. However, repayment terms can also be much shorter, for example, for bridging finance.
If you are looking at raising finance for commercial property, our team will be happy to discuss your options with you and what typical terms might look like.
How do I determine the right financing option for my commercial property?
To understand your options, it is important to know what your requirements are and what lenders look for when deciding who to lend to. It is, therefore, a good idea to speak to a specialist commercial finance broker, as they will be able to advise on specific funding options available to you.
There are various commercial property finance calculators you can use to get an indication of the types of finance options, terms and rates that may be available to you, but it is generally recommended to work with a broker to secure the best terms.
Contact our commercial property finance solicitors in Orpington, Dartford and Bexleyheath
To speak to one of our commercial property lawyers in Orpington, Dartford and Bexleyheath, please fill in our simple enquiry form or call 020 8301 7777.