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Commercial Remortgages – Updated January 2024

UK commercial remortgages

Are you looking for a lower rate?

Are you looking to raise capital against your commercial property?

Frequent Finance is an impartial broker, using all lenders in the UK market for the most competitive deal for commercial remortgages.

  • Your Semi Commercial Mortgage Requirements

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Recent property types we have arranged finance on, including commercial remortgages:

  • Retail property/Shops
  • Hotels
  • Public houses
  • Restaurants
  • Professional practices, e.g. solicitor’s offices
  • Offices
  • Factories
  • Warehouses
  • Industrial units
  • Investment Properties
  • Buy-to-Let Properties
  • Care Homes
  • Farms and Agricultural titles
  • Leasehold and Freehold titles
  • Leases under 70 years in some cases

Specialist facilities include:

  • SIPP Commercial Lending
  • SASS Commercial Lending
  • Limited Liability Partnership LLP Remortgages
  • Second Charge Commercial Mortgages
  • SPV Remortgages
  • Offshore company re-mortgages
  • No early repayment charges
  • Trust remortgages
  • Libor tracker rates
  • Fixed Rates
  • Valuation fees as low as £500
  • Initial rates as low as 1.22%
  • Some mortgages only have early repayment charges for the first year then no early repayment charge

Remortgaging commercial property in the UK presents a multifaceted avenue for businesses, investors, and property owners to reallocate financial resources, consolidate debt, or capitalise on more favourable loan terms. This comprehensive financial strategy can play a pivotal role in the overarching fiscal health and operational fluidity of a company, a corporation, or a limited entity. Through the lens of valuation, solicitors’ fees, loan-to-value ratios, and the potential for fast completion, the intricacies of commercial property remortgages unfold, offering insight into the strategic considerations and procedural nuances involved.

At the heart of the remortgage process is the property valuation, an assessment that determines the current market value of the commercial asset. This valuation is crucial, as it directly impacts the loan-to-value (LTV) ratio that lenders are willing to offer. The LTV ratio, representing the loan amount as a percentage of the property value, is a key determinant of the loan’s terms and conditions, including interest rates and repayment periods. Lenders typically offer LTV ratios up to 70-75% for commercial remortgages, though this can vary significantly depending on the lender’s risk appetite and the borrower’s creditworthiness.

Solicitors’ fees emerge as another critical component in the remortgage landscape, covering the gamut of legal services required to navigate the complexities of property law, from conducting due diligence to ensuring the proper transfer of the legal title. These fees can vary widely, influenced by the transaction’s complexity and the solicitor’s level of expertise. Given the legal intricacies associated with commercial property transactions, engaging a solicitor experienced in commercial finance is indispensable for a smooth and efficient remortgage process.

Fast completion is often a key objective for borrowers seeking to remortgage commercial property, especially in scenarios requiring quick access to funds, such as capitalising on an investment opportunity or covering urgent financial obligations. The ability to complete the remortgage process swiftly hinges on several factors, including the lender’s efficiency, the complexity of the property transaction, and the borrower’s preparedness in providing necessary documentation and information.

Remortgaging offers a lifeline for property owners facing arrears, allowing them to refinance existing debt under more manageable terms. This can be particularly beneficial for businesses undergoing financial restructuring or seeking to improve cash flow. Furthermore, for borrowers with bad credit, commercial property remortgages can provide an opportunity to secure financing based on the equity in their property rather than their credit history. Some lenders specialise in bad credit remortgages, offering terms that consider the property’s value and the borrower’s overall financial situation, sometimes foregoing traditional credit checks.

The corporate structure of the borrower plays a significant role in the remortgage process. Companies, corporations, and limited (Ltd) entities may find remortgaging an effective tool for unlocking the value tied up in their commercial properties, whether for expanding operations, diversifying investments, or consolidating business debts. The remortgage can also facilitate strategic moves such as title splitting, where a single property title is divided into multiple titles to enhance overall asset value or to sell parts of the property independently.

A solicitor’s involvement is critical in navigating the legal aspects of the remortgage process, ensuring that all contractual obligations are met and that the new mortgage agreement is in the borrower’s best interest. Interest roll-up options may be available, allowing borrowers to defer interest payments until the loan matures, thereby alleviating short-term financial pressures.

Commercial property remortgages can be structured as either first-charge or second-charge loans, depending on whether the remortgage will replace the existing mortgage or sit behind it as a supplementary loan. First-charge loans generally offer more competitive rates due to the lender’s primary claim on the property in the event of default. In contrast, while potentially higher in interest, second-charge loans offer a viable option for borrowers seeking additional funding without disturbing their existing mortgage arrangement.

The absence of an exit fee in some remortgage products gives borrowers the flexibility to repay the loan early without penalty, an attractive feature for those anticipating future financial liquidity. Rates for commercial property remortgages vary widely, influenced by the loan amount, LTV ratio, borrower’s credit profile, and the underlying risk associated with the loan. Competitive rates are typically reserved for borrowers with solid credit histories and substantial property equity, though options exist for various financial situations.

In the dynamic landscape of UK commercial property financing, remortgages stand out as a strategic tool for businesses and investors to optimise their financial structures, manage risks, and leverage property assets to their fullest potential. From navigating the complexities of valuation and solicitors’ fees to capitalising on favourable loan terms, the process of remortgaging commercial property encapsulates a balance of financial acumen, legal expertise, and strategic foresight. Whether for refinancing existing debt, extracting equity for investment purposes, or restructuring corporate finances, commercial property remortgages offer a versatile solution tailored to the diverse needs and objectives of the modern business landscape.

Are you considering personal loans of 25000 with a soft credit search?

The main issues with a 25000 loan are the short loan term, the impact of defaults, the discounted home valuation and the borrower not on electoral register.

Considering second mortgage rates to repay my logbook loans?

The main characteristics of rates for a second mortgage are set-up costs, the effect of CCJs, the disappointing home valuation and the borrower not on electoral register.

Are you looking for fixed-rate homeowner loans for people with good credit?

The main characteristics of fixed rate second mortgages are short loan term, the impact of secured loan arrears, the home valuers forced sale price and insufficient personal income.

Are you able to get a homeowner loan no phone calls with broad eligibility criteria?

The main features of a homeowner loan no phone call are intolerant eligibility criteria, the effect of credit defaults, the disappointing home valuation and the evidence of gambling on bank statements.

Are you able to borrow for a homeowner loan with poor credit at a low interest rate?

The main characteristics of homeowner secured loans bad credit are intolerant eligibility criteria, the effect of mortgage arrears, the delays in the property valuation and the evidence of payday loans on bank statements.

Are you considering secured loans for bad credit UK at a low interest rate?

The main issues with best secured loans for bad credit are the score from the credit report, the impact of credit card payment arrears, the home valuers forced sale price and the evidence of gambling on bank statements.

Nationwide Mortgages For Over 60s
Metrobank Equity Release
Pensioner Mortgages

Equity Release Yorkshire Building Society YBS

Metrobank Lifetime Mortgage
Which? Equity Release Scheme
Yorkshire Bank Equity Release Scheme
YB-Yorkshire Bank Lifetime Mortgage
Which? Money Lifetime Mortgage
– Updated For January 2024 Legal & General Lifetime Mortgage