Commercial Mortgages Tips

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Tips - Commercial Mortgages

  • There are several advantages to taking out a mortgage rather than leasing a property or raising funds through an investor. Chief among these is retention of ownership of the property, allowing your business to benefit from appreciation, the ability to sublet and immunity from fluctuating rental prices.

  • Commercial mortgages are more complex than their residential equivalents and are issued on a case-by-case basis. It is often possible to negotiate improved terms through a specialist broker.

  • Commercial mortgages represent a tax advantage over outright purchase as interest payments are tax deductible.

  • Most commercial mortgages will require a down payment, usually around 20% to 30%.

  • If a business defaults on a commercial mortgage, the grace period offered by the lender is likely to be considerably shorter than for a residential mortgage.

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