Not Found commercial investment | Baya financial

commercial investment

How do you value mixed use properties?

by

Commercial Element is nearly always a vacant value. Unless you have a blue chip company on a long lease when we can sometimes achieve a market value.

Residential Element will be valued using similar comparable properties in the area. Remember properties above commercial are usually less desirable.

If you have an HMO as part of the residential part, you may be able to achieve an uplift on the bricks and mortar with a yield-based or hybrid valuation. This is where you can benefit!

You will either end up with an aggregate value (the sum of the individual parts) or a block value for the building, where around 10% is deducted from the aggregate value.

Which figure the lender uses will be up to the valuer and their comments. Can the property be broken up and sold individually? And would there be sufficient demand to do this in 12 months?

 

Benefits of Bridging to Purchase Your Next Deal

by

What are the benefits of using bridging over cash to purchase your next deal?

The Valuation

Your bridging lender will instruct a valuation and the surveyor will have your schedule of work, so you have a professional opinion on your now and after-works figures.

The surveyor will also pick up if there’s anything that the lender doesn’t like – for example its location, neighbors, or nearby commercial units.

 

The Legal Process

Although you will need your own solicitor to purchase property cash, they are not the lender’s solicitor and therefore won’t be able to get their take on any unusual legal issues. It is much more tricky to resolve lease issues for example after you have purchased a property. Using a bridge means we have access to a lender’s solicitor and know that the property is mortgageable.

 

It Frees Up Your Money

You can look to take on multiple projects if all your money isn’t tied up on one, which it may be if you are funding the deposit and refurbishment yourself.

You also have the option of borrowing your refurbishment costs, which on bigger projects can mean you are putting in as little as 30% of the purchase price and the purchase costs.

 

It Doesn’t Cost Twice As Much

The preconception is that bridging is expensive, but there are lots of ways we can reduce the overall cost if you need a bridge and an exit with the same lender.

Lenders can reduce arrangement fees, valuation costs, and legal fees if you use them for both, and Baya will only charge an admin fee for the refinance if we have arranged the bridge.