Commercial Property Finance involves the process of securing financing for fixed properties designated exclusively for business operations, whether by owners or tenants, aiming to facilitate trade or deliver professional services for financial gain. These properties serve as vital assets in various industries, including retail, hospitality, and office spaces, catering to diverse business needs and aspirations.
At Lowe Property Finance, we specialise in navigating the complexities of Commercial Property Finance, offering tailored solutions to meet the unique requirements of each client. Our expert team collaborates closely with you to identify the most suitable financing options, ensuring seamless transactions and empowering you to achieve your commercial real estate objectives with confidence and clarity.
How much deposit do I need for a commercial property?
Commercial property loans usually need a deposit of at least 30% of the purchase price.
Can I get a loan on commercial property?
Absolutely! Securing a commercial property loan is indeed possible, as several banks offer this financing option. However, it’s crucial to understand that there are notable distinctions between obtaining a residential property loan and a commercial property loan. Familiarising yourself with these differences is essential before proceeding with your financing arrangements.
How long can you finance a commercial property?
In contrast to residential loans, commercial loans generally exhibit terms spanning from five years (or less) to 20 years, often featuring an amortization period that exceeds the loan’s term. For instance, a lender may extend a commercial loan for a duration of seven years, accompanied by an amortization period of 30 years.
Is it worth buying commercial property?
The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area, which is a much higher range than typically exists for single family home properties (1% to 4% at best).
