As with a residential mortgage, the commercial lender will hold the title deeds to the property as security. In the event of arrears the mortgage lender can repossess the commercial property.
A business owner who wants to fund his/her premises may use an ‘owner occupied’ Commercial Mortgage.
A Buy to Let commercial mortgage allows a landlord to purchase a commercial property solely for investment purposes and rely on the rental income to cover the mortgage and provide a profit.
Buying Commercial Premises – Advantages & Disadvantages
Buying commercial premises can be a good investment but before you commit, it is important to consider carefully the pros and cons. The acquisition of a property adds stability to your business and the property itself can become a significant asset, the upsides and the downsides to buying are shown right: