Property Finance
Commercial property finance allows your business to spread the cost of a building, its land, and any of its associated out-buildings into a series of manageable repayments.
You can also use property finance to leverage funding from your existing premises. This will give your company an injection of capital, which can be spent on expansion projects.
To qualify for commercial property finance, the premises in question must be used to generate a profit. This profit can come from capital gains, rental income, or investment.
Synergi can arrange various types of property finance. These include commercial, buy-to-let, and investment mortgages, as well as bridging loans and development finance.
Property finance can be instrumental in stepping up your business operations. It can give you a workspace and it can raise capital, which you can invest back into your company.
Property Finance
What is Property Finance?
Commercial property finance allows your business to spread the cost of a building, its land, and any of its associated out-buildings into a series of manageable repayments.
You can also use property finance to leverage funding from your existing premises. This will give your company an injection of capital, which can be spent on expansion projects.
To qualify for commercial property finance, the premises in question must be used to generate a profit. This profit can come from capital gains, rental income, or investment.
Synergi can arrange various types of property finance. These include commercial, buy-to-let, and investment mortgages, as well as bridging loans and development finance.
Property finance can be instrumental in stepping up your business operations. It can give you a workspace and it can raise capital, which you can invest back into your company.
Why should you use property finance?
When you invest in a commercial property through finance, you will pay for this property over a series of manageable installments. The increase in profits, which your new premises triggers, might even cover the repayment amount.
Property finance allows you to buy a new commercial premises without eating into your cash reserves. You could invest into a new office, repay the finance with your cash flow, and keep your savings in the bank.
Adding a property to your company’s balance sheet will significantly grow its value. As a result, it will be more likely that you receive an approval from a commercial lender when you’re applying for funding for other projects.
Property finance facilities are normally secured against the property itself. This means that a commercial lender will feel more comfortable with providing the funding. This means that they will be more likely to offer a low interest rate.
If you need to acquire a property quickly, you could apply for a bridging loan. Bridging loans allow you to kickstart your projects in the short-term, with a view to move onto a long-term finance option (like a mortgage) in the near future.
You can settle a property finance agreement early if your circumstances change. This will probably involve an early repayment charge (also known as an ‘exit fee’). You will be made aware of any charges at the start of your agreement.
Why should you use property finance?
When you invest in a commercial property through finance, you will pay for this property over a series of manageable installments. The increase in profits, which your new premises triggers, might even cover the repayment amount.
Property finance allows you to buy a new commercial premises without eating into your cash reserves. You could invest into a new office, repay the finance with your cash flow, and keep your savings in the bank.
Adding a property to your company’s balance sheet will significantly grow its value. As a result, it will be more likely that you receive an approval from a commercial lender when you’re applying for funding for other projects.
Property finance facilities are normally secured against the property itself. This means that a commercial lender will feel more comfortable with providing the funding. This means that they will be more likely to offer a low interest rate.
If you need to acquire a property quickly, you could apply for a bridging loan. Bridging loans allow you to kickstart your projects in the short-term, with a view to move onto a long-term finance option (like a mortgage) in the near future.
You can settle a property finance agreement early if your circumstances change. This will probably involve an early repayment charge (also known as an ‘exit fee’). You will be made aware of any charges at the start of your agreement.
What is a commercial mortgage?
A commercial mortgage allows you to spread the cost of a business premises. Basically, you will be given a loan that is secured it against the property you are financing. Just like a residential mortgage.
However, you must use the property that you are financing for business purposes. It must therefore generate a profit. And this profit can come through capital gains, rental income, and even investment.
The term of a commercial mortgage can vary from five years to 25 years. The lenders in this type of agreement will normally provide 70% of the property’s value. You will then make up the remainder.
Because the security on a commercial mortgage is taken against the property itself, the lender then gains a high degree of confidence. For that reason, the lender will typically offer a low(er) interest rate.
Low interest rates, and their subsequently lower payments, are far more beneficial for your cash flow. This would allow you to preserve a regular sum of capital, which you can invest into other projects.
What is a commercial mortgage?
A commercial mortgage allows you to spread the cost of a business premises. Basically, you will be given a loan that is secured it against the property you are financing. Just like a residential mortgage.
However, you must use the property that you are financing for business purposes. It must therefore generate a profit. And this profit can come through capital gains, rental income, and even investment.
The term of a commercial mortgage can vary from five years to 25 years. The lenders in this type of agreement will normally provide 70% of the property’s value. You will then make up the remainder.
Because the security on a commercial mortgage is taken against the property itself, the lender then gains a high degree of confidence. For that reason, the lender will typically offer a low(er) interest rate.
Low interest rates, and their subsequently lower payments, are far more beneficial for your cash flow. This would allow you to preserve a regular sum of capital, which you can invest into other projects.
What is a bridging loan?
A bridging loan is a financial product which is normally used in property acquisitions. It allows the borrower to kickstart a project by giving them access to capital quickly.
The interest rates on bridging loans are typically very high. But what might also be surprising is that terms on them can be very short, ranging from three to 18 months.
This is because bridging loans are considered as a means to an end. They are used to ‘bridge’ the gap between the start of a project and the start of a long-term solution.
The interest on a bridging loan can be collected with each of the repayments. Or the interest can be rolled up into one large sum and paid in full upon exiting the facility.
In spite of the high interest rates and the short terms, bridging loans are extremely useful. This is because they are quick to arrange, kick-starting your projects sooner.
What is a bridging loan?
A bridging loan is a financial product which is normally used in property acquisitions. It allows the borrower to kickstart a project by giving them access to capital quickly.
The interest rates on bridging loans are typically very high. But what might also be surprising is that terms on them can be very short, ranging from three to 18 months.
This is because bridging loans are considered as a means to an end. They are used to ‘bridge’ the gap between the start of a project and the start of a long-term solution.
The interest on a bridging loan can be collected with each of the repayments. Or the interest can be rolled up into one large sum and paid in full upon exiting the facility.
In spite of the high interest rates and the short terms, bridging loans are extremely useful. This is because they are quick to arrange, kick-starting your projects sooner.
What is a buy-to-let mortgage?
A buy-to-let mortgage is self-explanatory. It is a finance product that is specifically designed to spread the cost of a property, which will then be rented out to tenants.
A buy-to-let mortgage is calculated based on the projected rental income from the property being financed. However, the borrower’s creditworthiness will be evaluated.
Buy-to-let mortgages can be arranged for loans of £50,000 up to more than £1M. And these agreements can be repaid over terms ranging between five years and 25 years.
Similarly to a residential mortgage, a buy-to-let mortgage can be arranged on one of two repayment models. These include a traditional model or an interest-only model.
Any rental income will be used to cover the mortgage repayments, whether these payments consist of the loan principal and the interest amount, or the interest only.
What is a buy-to-let mortgage?
A buy-to-let mortgage is self-explanatory. It is a finance product that is specifically designed to spread the cost of a property, which will then be rented out to tenants.
A buy-to-let mortgage is calculated based on the projected rental income from the property being financed. However, the borrower’s creditworthiness will be evaluated.
Buy-to-let mortgages can be arranged for loans of £50,000 up to more than £1M. And these agreements can be repaid over terms ranging between five years and 25 years.
Similarly to a residential mortgage, a buy-to-let mortgage can be arranged on one of two repayment models. These include a traditional model or an interest-only model.
Any rental income will be used to cover the mortgage repayments, whether these payments consist of the loan principal and the interest amount, or the interest only.