Commercial mortgages for Post Offices
Local Post offices have proved to be a tried and tested business opportunity.
Clients require a commercial mortgage to enable them to purchase the Post Office. At Mayfair Consulting our consultants have the expertise and specialist knowledge to source the best commercial mortgage for you according to your needs and preferences, offering a truly bespoke service.
What is a commercial mortgage?
Commercial mortgages enable clients to purchase land/property. Lenders usually lend up to 85% of the value of the property. Existing business can also take out a commercial mortgage to fund business expansion and/or redevelop their property.
The lender will normally require a deposit of 20-30%, and will want proof that the repayments can be met. Start ups usually require a full business plan with forecasted accounts. At Mayfair Consulting we can offer a self certification commercial mortgage whereby no proof of income is needed at all, this could be ideal for startups.
How raising a commercial mortgage for a Post Office franchise differs from other properties
Even thought there have been many Post Office closures, lenders favor Post Office franchises
A high street lender will usually require:
• Business trading history
• Deposit available
• What retail experience you have
• if you have any adverse credit history
If you have difficulty with providing any of the above this is not a problem as Mayfair Consulting will have a commercial mortgage to suit you. With have conducted many transactions on a self certification basis, and with clients with an adverse credit history.
Location of the Post Office is very important as. Local village rural branches are likely to be sub postmaster agencies run in conjunction with other businesses like a newsagent. These agencies cannot be sold without the agreement of Post Office Ltd (POL), the lender will require confirmation that POL has agreed to appoint you as sub postmaster.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
