Commercial Investment Mortgages (Buy to Let)

Commercial Buy To Let Mortgages allow individuals to buy properties either as a sole trader, in a partnership, limited company or other commercial entity to rent out for income generation and potential future capital appreciation.

CFS can assist with funding your first buy to let properties using our considerable experience with property lending to assist you the client to achieve your property strategy.

Whether a client runs a property portfolio of 5 or 50+ residential, commercial or mixed use (e.g. freehold incorporating separate residential flat/flats and commercial premises) properties there is a need to take a measured approach in determining which lenders to use to grow the portfolio.

Commercial Buy To Let Mortgages can be used to:

  • Refinance existing properties to release equity for new purchases or to release equity for business purposes.

  • Buy new properties whether one or multiple units under one freehold.

  • Finance a freehold with multiple residential flats, commercial properties or a mixture of both within one loan as commercial lenders are comfortable with such structures. This option removes the need to separate the freehold from the various flats by creating leaseholds in a separate company (they cannot coexist in the same company) to enable the general buy to let lenders to provide loans against each flat.

  • Allow for interest only funding providing the loan can be adequately serviced and there is a clear future repayment strategy. This removes the need to make loan repayments and allows those clients who are looking to expand their property portfolio more cash to help achieve this goal.

  • Provide a range of repayment options for those who are not looking to grow their portfolios or wish to see the loan/loans reduced progressively.

  • Be used with residential properties (including holiday lets, Houses of Multiple Occupancy and student lets) offices, retail shops, shopping parades, warehouses (sole or multiple), pubs, restaurants, educational premises and many other property types.

As with any lending it is important to ensure you do not enter into a contract with a lender unless you are certain that the loan repayments/interest can be easily met.

Simon Purdom