Professional Practice Mortgage
What is a Professional Practice Mortgage?
These commercial mortgages are used for the purchase of premises exclusively used for the purposes of dentistry, a doctors surgery, or other similar professional practice business.
Commercial mortgages and loans for buying Practices or Consulting facilities are available for both leasehold and freehold purchased property, and for start-up as well as established businesses.
Whilst businesses and professionals with a clean credit history have a much greater chance of securing the lowest cost commercial finance, options exist for businesses and individuals who have had previous CCJs etc.
Our financial solutions include:
- Commercial Mortgages
- Secured Business Loans
- Small Firm Loan Guarantee Loans
- Invoice Discounting/Factoring
- Complimentary Financial Services
Each solution can be tailored to meet the individual needs of our clients.
Our product portfolio and lender panel has been developed and tuned through years of finance industry experience.
To ensure adherence to our company policy of only suggesting the most appropriate and cost effective products to our clients, TAL Commercial continually review the products and rates available in the market.
Status-Based Lending Sources
It is often perceived that the cheapest loans are obtained through High Street lenders. For this reason, Banks head the list when we consider low cost business finance sources.
However, now more than in previous years, there are often strict criteria attached to High Street loan applications, and potentially, subsidiary charges to be considered.
Lending Conditions
Professionals seeking finance for the purchase of new premises, or to extend their existing premises, have the luxury of choosing from a wide variety of commercial mortgage lenders.
The low-risk, high income nature of professional practice businesses, mean that these investments are considered to be of relatively low risk by both the specialist and mainstream lender communities.
Why Seek Professional Assistance?
Whilst professionals have the luxury of choice, the volume of options available bring different challenges.
Some key elements to consider when looking for a professional practice mortgage lender concern:
- Interest rates and costs
- Required securitisation
- Available capital for the deposit
- Professional experience & track-record
- Availability of supporting information
- Willingness of lenders to lend to your type of practice
Mortgage Products
Status-Based Commercial Mortgages
In the case of High Street Banks a business case will be required to support the mortgage application. As most Banks now make lending decisions via a centralised lending committee, it is important that the supporting documentation includes elements such as:
- Business plan
- Cash-flow forecasts
- Reason for the application
- A strong desire to make the practice successful
High street lenders usually lend lower loan to value on commercial property, however, in the case of professional practices this is not the case.
An applicant could potentially be offered 100% of the value of the property, however, there may be conditions attached that require securities such as a charge over personal assets owned by the company directors.
Non-Status Lenders
Non-status lenders look at the bricks and mortar values of the property, and less of supporting business documentation.
Consequently they will often require securitisation in the form of a cash investment at the time of purchase. (This is commonly referred to as a deposit, and may equate to 15% of the purchase price).
A recommendation toward specialist lenders may be made if the applicant has no supporting documentation/business plans, where the money is required urgently, or where there are no additional securities to satisfy the banks.
Specialist non-status lenders are also often quicker in making their lending decisions, and in releasing funds.
For Advice About Securing Your
Professional Practice Mortgage
Call TAL Today
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