A Comprehensive Overview of Commercial Mortgages

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A Comprehensive Overview of Commercial Mortgages

• https//www.cozmomortgages.com/

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• Do you want to grow your business? Have you
  realised that the cost of renting has become
  prohibitively expensive? If this is the case, you
  may discover that a commercial mortgage can
  provide business financing options that you were
  previously unaware of. Everything you need to
  know is as follows  

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What Exactly Is a Commercial Mortgage?

• Commercial mortgages are used to purchase (or
  refinance) any land or property for commercial
  purposes. Money is borrowed and secured against a
  property, much like a traditional residential
  mortgage.  
• They can also be used to expand an existing
  business or to develop residential or commercial
  property. They tend to be the primary resource
  for financing any business development plan by
  securing a business to a property (e.g. pubs,
  restaurants, guesthouses).
• Commercial mortgages have a smaller market share
  than residential mortgages, but their total value
  is disproportionately high. A commercial
  mortgage, as opposed to a residential mortgage,
  provides financing in four distinct ways  

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Purchasing a Commercial Property 

Securing land development projects 

Creating a sole proprietorship 

Increasing a buy-to-let portfolio 

• Commercial mortgages are designed to meet the
  needs of both the lender and the borrower. The
  lender requires security on their loan, and the
  borrower desires to benefit from lower repayments
  (compared to renting). 
• A commercial property mortgage is typically a
  long-term loan (often up to 25 years) that
  provides funds to purchase a commercial property.
  The mortgage lender will typically lend up to 70
  of the property's value, leaving the business to
  make regular mortgage payments while using any
  available working capital to fund growth.   
• Because most commercial mortgages only cover up
  to 70 of the total value of the property, the
  lender must rely on the business to raise the
  remaining funds. This is frequently a significant
  sum of money to come up with.  

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Long-Term Advantages of a Commercial Mortgage 

• A commercial mortgage can do much more than just
  provide a place for your business to operate
  they are increasingly being viewed as a source of
  business funding.
• When you own your own business space, you reduce
  your exposure to rising rental costs. Commercial
  mortgages can help your business plan for the
  future by allowing it to access equity as the
  value of the property rises over time.  
• There are several advantages to selecting a
  commercial mortgage, many of which seek to
  provide future sources of funding and finance  
• A commercial mortgage can be used by a business
  owner to purchase a commercial property for their
  own use, to rent out, to purchase a company, or
  to unlock the equity in already owned buildings.
  As long as you have tangible assets to secure
  against, it has become an increasingly flexible
  way of financing your property purchase.  

• Make available capital for investment or growth. 
• Consolidate commercial debts 
• Purchase new equipment 
• Increase trading 
• less expensive than renting 
• Option to sublet or lease portions of the
  property to generate additional income. 

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What You Should Know Before Applying For A
Commercial Mortgage  

• Accounts for the last three years (or tax
  returns) 
• Figures for current and projected performance 
• Account statements 
• Details and profiles of all of the company's
  directors and partners 
• Statements of assets and liabilities. 

• There are numerous lenders who provide commercial
  mortgages. It is critical to select the best one
  for you. 
• Rates and commercial specialization can vary.
  Some lenders only lend when there is a
  substantial amount of asset security available,
  whereas others prefer to lend to owner-operators
  or will only fund land developments.  

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Mortgage Phrase
Repayment

• The loan term can also vary greatly, ranging from
  5 to 40 years. It's a significant financial
  commitment, so you should know what you want from
  your commercial mortgage as well as what your
  mortgage lender wants from you.  

• Interest rates are typically higher than for
  residential mortgages because the lending is
  deemed more risky. You will almost certainly be
  required to make a larger deposit of at least
  30, which translates to a lower loan to value
  (LTV) rate with the benefit of greater equity.

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Previous Credit History 
Property Utilisation 

• Your credit history will have a significant
  impact on whether or not your commercial mortgage
  application is approved. However, it is not
  always the sole focus that is taken into account
  you will also need to provide a complete picture
  of your company, including projections and a
  business plan. 

• Not all commercial mortgages are the same the
  amount you can borrow and the interest rate
  offered will be affected by what and how you use
  your property. 

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Renting Out Your Home 
Refurbishment

• A popular and viable option for business owners
  looking to maximise the earning potential of
  their property while offsetting the cost of their
  repayments. 

• Always consider the cost of renovating,
  installing amenities, decorating, and general
  property refurbishment.

Source https//penzu.com/public/6659716e
If you are a new business in need of a commercial
mortgage, looking to develop a commercial
property, or looking to refinance your commercial
mortgage, call us today at 97145587195.
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Contact Us

• Mail on info_at_cozmomortgages.com
• Address 803, Silver Tower, Business Bay, Dubai,
  P.O.Box 238065
• Contact Number 97145587195
• Visit https//www.cozmomortgages.com/