Semi-Commercial Remortgage off a Bridge

The Client

Client is the owner of a Semi-Commercial Property with a Hair Salon on the ground floor along with a first floor flat. The client had obtained planning permission to build another 2-bed flat at the back, which they had recently completed using Bridging Finance as a short-term funding solution.

The Scenario

Following the completion of the building works to add the rear flat, the client needed an exit off-the-bridge and wished to secure a new mortgage to pay off the Bridge whilst also having a long-term strategy with lower repayments. The Semi Commercial Property will now be generating rental income from the 2 flats as well as the additional rental income generated from the hairdressers.

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The Solution

Looking at the Semi-Commercial Mortgage option, we were able to illustrate to the Lender that the mortgage could be repaid using the rental income solely from the property. Although the client didn’t have substantial personal income, the Lender was confident with purely the rental income being generated from the security property.

Summary

Bridging Finance is a great way to build extensions or make improvement to add value to your commercial property and then re-mortgage it to a Commercial Finance product to take out initial investment and lower monthly payments. Lenders mainly look at whether the mortgage can be repaid using the rental income irrespective of personal income.

If you have any questions relating to Commercial Finance, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 0113 8730 740. Alternatively, please complete this short online form and one of our Advisors will call you right back.