What are the benefits of a commercial mortgage?

When purchasing a commercial property, you have the option of obtaining a commercial mortgage, which offers several advantages to your company over renting the property or using other financing methods. Here are some of the most significant benefits of obtaining a commercial mortgage: 

1. Capital Gains

Property prices have been rising for a long time, therefore, there is a significant probability that the value of the commercial property you purchase will continue to grow. When you sell the property, you can receive a lump sum that can be used for business or personal purposes. However, you must consider that you will be required to pay capital gains tax on the proceeds from the sale of the property.

2. Stability

When you own the property, you have more say over how it is used than if you rent it. Your mortgage payments will most likely be comparable to monthly rental payments, so rather of paying your hard-earned money to a landlord, each mortgage payment grows your equity. You also don’t have to be concerned about unforeseen rent rises. When you make changes to the property, you are enhancing your company’s asset rather than improving the property of a landlord.

Overall, owning your commercial property provides stability to your organisation and enhances your financial sheet. This corporate asset has the potential to increase in value, making it a valuable long-term investment.

3. Control Over Building Presentation

Your business premises may have a significant impact on your company’s reputation, especially if consumers and clients visit your location to buy items or have meetings. You have complete influence over how professional your business is seen if you have control over the building in terms of outside displays, décor, landscaping, etc. If you rent a building, the landlord has authority over crucial areas such as décor, facility management, external upkeep, and anything else visually related to the business meaning that you might not be able to show your signs in the way you want or customise it to match your brand colours.

4. Easily leave premises

If you own the property and no longer want it, selling it might be a lot easier than breaking a business lease. Commercial leases are sometimes lengthy, and it is difficult to break a lease early.

5. Renting Opportunities

If you own the property, you can rent out more space or land that is linked to it. You may earn a lot of money by renting out offices, parking spots, storage space, and so on. If you rent a property, you are typically not permitted to rent out space unless agreed upon with the landlord.

Are you looking for advice on commercial mortgages?

Veracity Financial Planning offer financial planning and advice on commercial mortgages and semi-commercial mortgages. Veracity FP typical corporate clients are individuals or companies ranging in sizes, from to to mid-sized firms looking for finance to purchase or refinance properties for personal or investment purposes and who inted on growing their wealth.

Contact Veracity Financial Planning now. Call 0115 967 0888 or email: financialadvice@veracityfp.co.uk


Picture of Woody Snapper

Woody Snapper

Woody works with individuals and business' looking for corporate finance, high net worth mortgages, complex loans, bridging loans and development finance.

To contact Woody.

Tel: 07922 413586


Email: woody@veracityfp.co.uk