How commercial products can help residential landlords. Speaker: David Weeds

Transcription

1 How commercial products can help residential landlords Speaker: David Weeds

2 The marketplace

3 Commercial market Continued economic recovery Improved business confidence Increased demand for commercial property in our region Commercial property continues to be a popular form of investment Recession meant speculative development halted Now new opportunities Increase in rental income

4 Availability of funds Commercial borrowing criteria widened High street banks Keen to look at commercial borrowing propositions Criteria can be restrictive Challenger banks Hungry for commercial business and introducing new schemes to the market

5 Alternative funding Peer to Peer lending Invoice financing Community development funding institutions Private funds available

6 Commercial Trust

7 About Commercial Trust Specialist broker for buy to let mortgages, commercial mortgages, bridging loans You can expect: Comprehensive help if you are diversifying into commercial property Unbiased recommendations from experts High standards in customer service (look us up on Trustpilot.co.uk) Fast turnaround times Hard work, on your behalf, to get you all the way through to product completion

8 Products

9 Bridging loans Access funds quickly for any legal purpose Individuals, partnerships, companies, trusts Secured on property or land (cannot be the first charge on your home) Commonly used for buying: Uninhabitable property Property at auction Land for development Also used for: funding property modifications, purchasing stock, machinery or IT equipment for a business, settling an unexpected bill.

10 Benefits of a Bridging Loan Fast access to funds (can be a matter of days, more often takes 2 weeks) Available to clients of up to 85 years of age No minimum income requirement Borrow up to 75% loan to value Exit to long-term finance

11 Top tips when buying at auction Call us 2 weeks in advance Tell us about the property(ies) you are interested in We will arrange a loan to: Settle the remaining cost of the property after the auction We can assist with an exit to long term finance

12 Case study Bridging Loan arranged for dilapidated property Previously used another Broker Broker had recommended a Buy to Let Mortgage Mortgage had fallen through 2 weeks before deadline Identified the problems and information needed to secure the deal Loan terms agreed within 4 hours and solicitors instructed on same day

13 Case Study Funds released a week after initial enquiry Day after Bridging Loan completed we began the refinancing process to a BTL Mortgage The success we achieved for this client has resulted in us working on multiple projects for him

14 Commercial Mortgages Commercial Investment Property Commercial Owner Occupied Semi- Commercial Properties Commonly used for buying: Flats above shops Unusual property types Offices, retail, leisure and hospitality, industrial and warehousing, land and development, mixed use property

15 Benefits of a Commercial Mortgage Borrow up to 75% Loan to Value Assist in purchase of commercial/semi-commercial property Investment or owner occupied properties Interest only or capital & interest repayment Rental yield on commercial properties can be higher in comparison to Buy to Let properties Multi Units large portfolios

16 Case study Commercial Mortgage outside ordinary criteria Refinance of mixed portfolio (residential and semi commercial properties) Mixture of private and DSS tenants Existing lender not willing to assist with capital raising Client had approached existing lender, other Banks and Brokers with no success Wanted to capital raise 180,000

17 Case study We were able to achieve; Remortgage of 830,000 to repay existing borrowing and provide 180,000 capital raising Agreement in Principle secured within 3 days Identified appropriate Lender who would accept the security Deal completed allowing client to reinvest in his portfolio

18 Thank you