Commercial mortgage???

[anna66]

Hi
I have the opportunity to buy 4 flats and a basement office at a reduced price(Family)for a quick sale and would need a mortgage with a ltv of 50%. At the moment the flats have been stripped out (no bathroom and kitchen)for refurbishing which I have the money to cover for this. I would then be looking to sell 2 of the flats and renting the other 2. The sale of one flat would almost cover mortgage required. At present the basement office is being rented out and this rental would almost cover an interest only mortgage. I have no other outgoings.

With the flats having no bathroom and kitchens at present is this going to be a problem for obtaining a mortgage? If so, is there any way of getting round this? As said before a quick sale is wanted from seller! What type of mortgage would be required?

I would be looking to clear mortgage as soon as possible.

Will be going to see a broker but any help beforehand would be greatly appreciated.

Thanks in advance
Anna

[ComareTheMortgageMarket]

As far as I can see obtaining a commercial mortgage on this will not be a problem and the broker will be able to confirm this to you too. I do not deal in commercial myself so am no expert although the lack of bathroom/kitchen would only come into play if it was a residential/buy to let venture at the outset. If you are worried about that then just think commercial lenders lend money on plots of land that have nothing on whatsoever. They would have additional security with your plan as the flats are standing already.

[anna66]

hi Anthony

Thank you for your reply. As I said I have no outgoings and we jointly earn just over £40,000 would a commercial mortgage for £180000 be feasible on this income considering ( I and banks )have nothing to lose regarding ltv and also rental coming in at present(which wouldn't change during renovation). Also work required would probably take between 3 -6 months. could you push me at all in the right direction who does commercial mortgages? Thanks

[ComareTheMortgageMarket]

Id say your bank may be the best option to try to commercial & I think Santander do some alright rates too. Personal income is not always taken into account with commercial, its usually the potential income - say from business venture/rental incomes etc that they base the lending on. Commercial has no set criteria as a lot of ventures are unique so its a case by case scenario.

[Enness Private Clients]

If you struggle with the main lenders you could try bridging finance, there are some good options for this type of deal and you can refinance when the work is done. Terms are usually available very quickly too.

You can try londonbridgingfinance.co.uk/

[Enness Private Clients]

sorry, link should be London Bridging Finance

[ComareTheMortgageMarket]

They are very quick to arrange but fees can be 0.75% - 1.5% per month on the amount raised.