While commercial development finance can be a funding option for developing commercial property, there is other side of the property financing that is more affordable and less risky. That is the commercial mortgages. Commercial mortgages can be a good start for entrepreneurs since commercial development finance is already for those who need large amounts to arrange with companies providing. While commercial development finance is still a far-off option, commercial mortgages can be beneficial just the same.
Companies that have the capability of getting commercial mortgages will be faced with many advantages. Aside from being able to own business property, they will do well with their business with the right property arrangement from development finance UK provider. The advantages of commercial mortgages under development finance UK include flexibility, investment opportunity, letting and tax benefits. Let’s briefly explain each advantage:
* By using commercial mortgages to buy your property, it will give you a level of freedom over what you do with the building that you simply wouldn’t get if you were to lease the premises, thus providing certain level of flexibility.
* There is also investment opportunity with commercial mortgages since it means buying your own business premises. You will be able to claim any profit that occurs from the sale of the building that you obviously wouldn’t be entitled to if you were merely leasing the building.
* Letting is another great advantage with commercial mortgages. If your company expands and you move to larger premises, you can continue to make profit from the business premises that you acquired with commercial mortgages by continuing to let it out to another company.
* Finally, owning your business premises is also associated with a number of tax benefits for the companies. In some cases, business premises have the prospect of a 75% Capital Gains tax exemption which is considerably higher than the typical 5% associated with residential properties.
Commercial mortgages can be available in companies offering development finance UK. While these companies offer 100% development finance for large scale projects, they offer commercial mortgages appropriate for small to medium scale business ownership. You just need to talk to the broker for development finance UK to find specialist in commercial mortgages to give you the best option.
