Commercial Mortgages
Commercial mortgages are medium to long-term loans that can be used to fund the purchase of commercial business premises whether for investment or owner-occupier purposes.
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Commercial Mortgage Criteria
Direct access to decision makers meaning terms in days and funding in weeks
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Commercial Property types we like
Office
Industrial
Retail
Business Park
Mixed Use
Residential Blocks & HMO's
Hotel
Leisure
Medical
Car Park
Educational
Gym
Logistics
Storage
Trade Counter
Petrol Station
Warehouse
Pub
Religious
Restaurant
Shop and Uppers
Worth taking a few minutes to find out if we can help? Call us on 0203 637 8414 or email [email protected]
“Our member brokers have warmly received Proplend as they offer further diversity in the property lending space”
― Norman Chambers, NACFB, Managing Director
“We are seriously impressed with your organisation and look forward to the next one”
― George, Kent, Proplend Borrower
“Proplend borrowing was instrumental in our purchase.”
The creative and flexible solutions offered to us not only assisted with a problematic purchase process but their expertise and knowledge of the funding and legal process helped enormously with the purchase of all assets and liaison with a third party funder – all of which smoothed the way to completion. Proplend made the process straightforward and considerably less stressful.― Chris, Sussex, Proplend Borrower
"Proplend has easy borrowing criteria to understand and the lending manager (Stewart Bruce) showed his experience throughout. The platform was easy to use and I will definitely be using it again."
― Shaz, London, Proplend Borrower
“I was impressed with their service and easy to understand lending criteria – I’ll use them again.”
Proplend helped fund our purchase of a commercial property with a two-year loan facility. I found Proplend online and was very impressed with their service and easy to understand lending criteria. Our regular contact, Stewart kept me informed throughout and I would definitely recommend the platform to others. I intend to use the platform again in future and will look to refer my own clients too.Shaz, London, Proplend Borrower
Commercial Mortgages
What are Commercial Mortgages?
Commercial mortgages are, loans which are secured against commercial property. They are used to secure funds to fund commercial property purchases or release funds from a commercial property.
How do Commercial Mortgages Work?
They are medium to long-term, loans which can be interest only or capital repayment against income producing commercial property. In order to get a commercial mortgage you will need to offer a commercial property as collateral which the Lender will take a 1st legal charge over. If the Borrower is a SPV, the Lender will usually also require a Debenture over the SPV and a Personal Guarantee from the sponsor.
During the term of the loan, interest is serviced on a monthly or quarterly basis.
If interest only, the capital part of the loan is repaid at the end of the loan term.
What information do I need to provide?
- Lenders make decisions based off information
Details about the property:
- address
- type of property
- freehold or leasehold
- purchase price or current valuation
- if already owned, purchase price when purchased and anything you have done to the property since then
- tenancy schedule
- copy of leases
- EPC’s
- an old valuation, if you have one
Details about you:
- who is the Borrower (personal or SPV)
- if SPV, are there any other assets held in the SPV
- if SPV, ID for directors and shareholders >25%
- Property experience / CV
- Do you have any bad credit (tell in advance)
- Assets and Liability Statement
Business Plan:
- if there is an existing loan, how much is outstanding
- what is your business plan while you own the property
- if Cap Raise, what are the funds being used for
- what is your exit strategy
The more information you supply, the quicker and better the response you will get from a Lender.
How quickly can I get a commercial mortgage?
If you supply the information above in a timely manner, the Lender can make a quick credit decision. Once approved at credit, the Lender will instruct a valuation and legals.
Make sure that you pay the valuation fee asap and put your solicitor in funds and provide any supporting information they require in a timely manner.
What fees are involved?
In addition to the interest charges, when taking out a commercial mortgage, the following fees are or could be due:
Lender Arrangement Fee: This fee is usually 2% of the gross loan amount and is deducted from the loan at drawdown
Broker Fee (if used): Most Brokers charge a fee for arranging a mortgage, this could be a set fee or a percentage of the gross loan amount, it will be deducted from the loan at drawdown.
Valuation Fee: Fee payable to a chartered surveyor when they value the property for lending purposes and varies depends on the property value, type and location.
Legal Fees: Borrowers pay for both their own and the Lenders legal fees. Neither will start work until they have been put in funds and undertakings have been provided.
Lender Exit Fee: If the Loan is not redeemed on or before the loan maturity date, a loan exit fee may be due
Early Redemption Fee: Some loans (usually fixed rate loans) may incur Early Redemption Charges if the loan is redeemed during the period the fees are due.
Penalty Interest: Penalty Interest could be incurred if the loan is not redeemed within the agreed loan term.
Administration Fees: If during the term of the loan, interest payments are missed then the Lender will charge administration fees.