| commercial property investment | commercial investment mortgage | commercial mortgage rates | commercial mortgage interest rates | best commercial mortgage | commercial mortgage loan rates |
| commercial mortgage rate | commercial mortgages | commercial mortgage | commercial mortgages uk | commercial mortgage brokers | commercial property mortgage | commercial mortgage broker |
| commercial real estate loans | commercial property loan | commercial lending | commercial mortgage loan | commercial property loans | commercial property finance | commercial mortgage loans |
| commercial mortgage finance | small commercial mortgage | commercial mortgage uk | commercial morgages | commercial property mortgages | commercial real estate finance | business property finance |
Lismore House, 28b Wilton Road, Reading, RG30 2SS.
The simple answer to this question is, in the eyes of many high-street banks, a lease is only as long as the first tenancy break clause.
Commercial property investment is going through something of a recovery currently. Many investors have changed their position on buying commercial property now that asking prices are down and higher yields are now available.
Many private investors have looked to raise capital from their existing property portfolio to fund their current investment plans. Although this seems an efficient option, the high-street banks are less likely to offer the funding now due to tightened lending and lease length restrictions.
Ann-Marie O’Neill of Money For My Business explained:
“Few of the high-street banks will fund capital raising exercises, particularly for property investment. In addition most lenders will only offer a repayment term that coincides with earliest of the end of the tenancy or the first break clause. Unfortunately break clauses have been an area of landlord flexibility in attempts to lure commercial tenants in.”
“Many of our clients have current tenancy leases in place with a couple of years left or have a break clause every five years. Due to the tightened lending conditions many of the high-street banks will not offer funding or offer repayment terms that are unaffordable.”
In these cases the landlord has very few options open to them. Many attempt to negotiate an extended lease with the current tenant, however with many of the UK lease restrictions, tenants remain unlikely to negotiate whilst market conditions remain unstable.
Money For My Business has access to a new line of property finance that offers commercial property investors the finance they need, and the flexibility on lease lengths and break clause timeframes that is not available from many of the high-street banks.
Money For My Business is currently offering UK commercial investment property owners a free review of their commercial mortgage finance. To access your free review call Money For My Business directly on 0845 034 5120
0845 034 5120
Click here to sign up to our newsletter and get the latest news delivered direct to your Inbox.