As most investors know, Mainstream Lenders tend to cap their loans at 60% to 65% of the property value. So how high can you go?
With a commercial mortgage, it all comes down to the income the asset produces and the security of that income. If the income is there to service a loan greater than 65%, why can’t you borrow more?
In the Specialist Lender market, lenders have more knowledge of individual sectors than your average bank manager, and therefore they’re able to de-risk a proposition accordingly.
We have been able to source funding at up to 85% LTV for clients.
Why choose PFG for your High LTV Commercial Mortgages?
The key to getting a High LTV Commercial Mortgage is understanding how we de-leverage the asset in the future.
By understanding the risk to the Lender, we can counter their objections and de-risk the proposition accordingly;
- The Borrower; their background and experience in managing such assets.
- The Asset; what are the alternate uses? Can the space be adapted to suit new tenants? Is the cashflow there to support a change of use or the future plans?
- Asset Management; is there a value-add to allow de-leverage? Could the asset be more intensively managed to increase income and allow amortisation?
- The Wider Picture; what is the demand and supply for this space in the local area? How is society changing and how will that impact on the tenants and the sector?
At PFG, we’re in the Specialist Lender market every day. We understand the challenges know how to structure finance around your unique requirements.
