Commercial Investment
A commercial investment mortgage is a loan used to purchase or refinance commercial or semi-commercial properties that are let to tenants. These mortgages function similarly to residential buy-to-let loans but are tailored for properties used for business purposes. Interest rates and fees are typically higher than those for owner-occupied commercial mortgages due to the additional risk associated with investment properties.
When assessing an application, lenders focus on three key factors: the applicant, the property, and the lease.
• The Applicant – Lenders evaluate the borrower’s credit history, financial position, and experience in letting both residential and commercial properties. Meeting the lender’s criteria in these areas is essential for approval.
• The Property – A strong investment property is one with good rental demand or resale potential. Lenders rely on a surveyor’s valuation, which assesses market demand and overall asset stability to determine the loan’s viability.
• The Lease & Tenant Strength – A secure lease with several years remaining and a financially stable tenant is crucial. Lenders consider both the lease terms and the tenant’s financial standing, as a tenant at risk of insolvency may jeopardise the investment’s reliability.
Commercial investment mortgages provide a valuable financing solution for landlords and investors seeking long-term rental income from commercial properties. By ensuring a strong tenant and lease structure, borrowers can secure better terms and enhance the sustainability of their investment.
Contact Us
If you have a commercial or specialist finance requirement, you can use our form to submit an enquiry or alternatively get in touch with a member of the team.
We are a credit broker not a lender
Balgores Commercial Finance Ltd is an Appointed Representative of Optimum ELITE which is a trading name of Optimum Commercial Solutions Ltd, registered in England and Wales 09518480. Optimum Commercial Solutions Ltd is authorised and regulated by the Financial Conduct Authority FRN: 808754. Balgores Commercial Finance Ltd trading address and registered office: 10 High Street, Wickford, Essex, England SS12 9AZ. Company number: 16489884.
There may be a fee for our advice. The actual amount you pay may vary but will never be more than 1% of the loan amount.
We conduct both regulated and unregulated business and therefore not all products provided through us are regulated by the Financial Conduct Authority.
We may receive a commission from the Lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.
Our aim is to provide you with a professional and efficient service. However, there may be occasions where you feel this has not been achieved and should you wish to make a complaint about any aspect of the service we provide to you, you can do this by writing to 10 High Street, Wickford, Essex, England SS12 9AZ, or by telephoning us on 01268 763 477 where we will try to resolve your concern at the earliest time possible.
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