Commercial Mortgages: Raising a Deposit

Financial Services > Mortgages > Commercial > Commercial Mortgages: Raising a Deposit

Most commercial mortgage lenders will offer finance of between 70% and 80% of the value of the property, leaving the borrower to find a significant deposit of between 20% and 30%.

Unless the company has the luxury of sufficient funds for the deposit in cash, or the owner is prepared to contribute personal funds to the purchase, consideration must be given to the best way to raise the money. Some options are cheaper or more tax-efficient than others. There are a number of ways to raise business finance for property, for example:

• A business overdraft or loan. Click here for more details
• Personal equity release from property. For more information

• Pension funds 50% of the total value of the pension fund can be used to purchase commercial property. There are a number of tax advantages. To find out more:

• Private equity or venture capital investment which involves handing over a share of the business in return for finance. This may be worth considering if the company has plans for large scale future growth.

In order to make sure you choose the best option for your company, it is a good idea to talk to a specialist adviser. We could save you time and money by using our experience to help you, whatever your company’s circumstances. To talk it through with one of our experts, please complete a Mortgage Enquiry Form above and we will arrange for you to be contacted. Alternatively, you can call us on 0845 108 0505.