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What is the normal process of obtaining a commercial mortgage?



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What is the normal process of obtaining a commercial mortgage?

The process involved in obtaining a commercial mortgage are similar to that of obtaining a residential mortgage, you will first of all need to find a suitable property for your business. Once you have found a suitable property you need to apply for a commercial mortgage. You do this by filling in a commercial mortgage application form, this will require a lot of other information such as a business plan etc. The lenders will require a valuation on the property, which you will need to instruct. While this is beening process and the application form is being underwritten you will need to appoint a solicitor.The Solicitor will deal with the conveyancing of the purchase. It is good practice to select a solicitor who has had experience in dealing with purchases in the commercial sector. The solicitor will have to carry out local searches and other enquiries into the property. The process usually take up to 2 months from the point of your applicationto the point where you have exchanged contracts and completed the sale. Once the purchase has been completed the mortgage lender will then place a charge on the property, so that if you fail to make the repayments as agreed then the mortgage lender will have the right to repossess the property.

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Commercial Mortgages Frequently Asked Questions

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