Owning any property, whether commercial or otherwise, comes with an awful lot of responsibility. You need to have the right insurance, be able to keep up with the upkeep and maintenance, and if it is a business property then you need to keep it looking nice so as to keep the customers and clients coming in. Unfortunately, none of these comes for free and any time you want to have a refurbishment or redesign then you will need to find a way to finance it. There are several routes which you can go down in order to do this....
Commercial property renovation or refurbishment is a balance between current tenant placement, future occupancy needs, and income cash flow growth. Overlook or disregard any of these elements and your renovation can easily fail.
Cash
Paying for everything straight up with cash is a really good option if you can afford it as it means zero interest and no repayments. However, very few people are in a position to actually be able to do this. If you are lucky enough to be able to finance out of your own pocket make sure you have owned the property for at least 6 months before you do. In the UK, most mortgage lenders will not allow you to remortgage anything until you have owned it for at least this period of time, so if you run into problems and need extra cash you may have to borrow it from elsewhere which means even more repayments to different lenders.
Using Your Own Home
Remortgaging your own personal place of residence is the most popular and often the least expensive option for financing an office refurbishment but you need to make sure that you declare exactly what you will be using the money for to your mortgage provider. Before making a decision such as this make sure you are fully aware of the risks you could be subjecting your family to as missed payments could lead to serious repercussions. It may be beneficial to visit with an accountant or independent financial adviser who will be able to run through everything with you and make sure there are no misunderstandings.
Bridging Finance
The first thing people think of when they look into bridging finance is that the interest rates are extremely high and they are shocked. However, bridging could still be a good way to go about financing a refurbishment, particularly if your commercial property is truly in need of quite a bit of refurbishment. You will need to have another property to borrow against though. Bridging lenders are not as fussy as normal mortgage brokers so that your application is much more likely to be approved.
Paying for everything straight up with cash is a really good option if you can afford it as it means zero interest and no repayments. However, very few people are in a position to actually be able to do this. If you are lucky enough to be able to finance out of your own pocket make sure you have owned the property for at least 6 months before you do. In the UK, most mortgage lenders will not allow you to remortgage anything until you have owned it for at least this period of time, so if you run into problems and need extra cash you may have to borrow it from elsewhere which means even more repayments to different lenders.
Using Your Own Home
Remortgaging your own personal place of residence is the most popular and often the least expensive option for financing an office refurbishment but you need to make sure that you declare exactly what you will be using the money for to your mortgage provider. Before making a decision such as this make sure you are fully aware of the risks you could be subjecting your family to as missed payments could lead to serious repercussions. It may be beneficial to visit with an accountant or independent financial adviser who will be able to run through everything with you and make sure there are no misunderstandings.
Bridging Finance
The first thing people think of when they look into bridging finance is that the interest rates are extremely high and they are shocked. However, bridging could still be a good way to go about financing a refurbishment, particularly if your commercial property is truly in need of quite a bit of refurbishment. You will need to have another property to borrow against though. Bridging lenders are not as fussy as normal mortgage brokers so that your application is much more likely to be approved.
Another way to look at this is that they will lend to pretty much anybody against pretty much any property so long as they can make a return on their money and can be satisfied that they will get their money back if you default and they need to sell their security at auction.
Whichever financial route you decide to take when planning your commercial property refurbishment or renovation it is vitally important that you understand the level of risk you are undertaking. Depending on the type of credit you have taken out the repercussions could be extremely serious. You could end up losing your property and losing your family home at the same time leaving you and your family with nowhere to live. You will almost definitely receive a black mark on your credit score and any attempts at gaining credit in the future will be extremely difficult. For more information visit ApolloInteriors.com.