A commercial mortgage helps you purchase a property that you are not planning to use as your residence, but for business purposes; an example of such a loan would be a buy-to-let mortgage. These types of loans may be especially helpful when you decide you no longer want to rent the space your business is in and opt instead to purchase property. This strategy is especially useful if you’re considering practice expansion.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Tailored commercial mortgages as a source of finance for your dental or medical practice
Commercial mortgages are specialised loans that are designed for a high volume market – but each loan is catered to the individual property that is up for a mortgage.
All loans are evaluated on a case by case basis because every single property is unique and must be priced accurately according to the current and future prospects of the piece of real estate.
Because the nature of the market is so specialised, it’s important to consider providers that have experience in your particular field.
An understanding of the problems and complications that may arise in the dental and medical field is a crucial factor when deciding who to trust your business with.
If they’re familiar with your industry, they may be more willing to work with you to create a customised offer that suits your business’ needs.
Consider the stipulations and limitations
As with any lender of course, there will be stipulations and limitations concerning the loan. Many providers require a minimum borrowing amount. You may find repayment terms differ from loan to loan or find that your fixed versus variable interest rate options difficult to choose from.
Others still may have conditions for how you use your property, so if subletting part of your property is an option you’d like to consider, make sure your chosen provider will let you use the building how you plan.
As with all mortgages, you’ll need to be prepared financially for the responsibility.
You’ll need to approach your potential mortgage provider with a locked-in repayment amount and evidence to support that figure.
Your credit score and report should be in good standing and you should be well-versed in your company’s financial background and able to produce personal asset and liability statements if they are necessary.
While you’re ensuring your finances are in order, you’ll need to keep in mind the extra fees you’ll be responsible for paying. Extra cash is needed for arrangement and valuation fees as well as legal costs and stamp duty and they often end up costing more than you initially planned, so always make certain you budget for more than enough.
Choose a trusted advisor to help you make the right decisions
Selecting a commercial mortgage provider that will be able to support your business during a time of growth is a hugely important step in expanding your practice.
At Dental and Medical Financial Services, our expertise lies in working with borrowers to locate and secure the best lender that will help our clients reach their professional goals.
Need help to secure a commercial mortgage?
Mortgages | Buy to Let | Property | Mortgage Planning |
Dental & Medical Financial Services have been helping doctors and dentists with finding commercial mortgages for your dental and medical businesses for over 25 years. Call Chris to discuss your options.
Tel: 01403 780 770