01206 544333
The interest of owning Semi-Commercial Properties is on the rise
Unsurprisingly, the recent increase in rates that everyone is experiencing at the moment, is forcing landlords and investors into diversifying their portfolios as best they can to manage cost and improve profitability. One property class that has benefited from this are the semi-commercial properties, which we are finding more popular with our clients.
Semi-commercial properties typically achieve a much higher yield than standard residential buy to let properties; you also benefit from multiple income streams due to there being multiple tenants in place.
How quickly can you remortgage a Semi-Commercial Property that you already own?
For a lot of lenders, given the more complex nature of a semi-commercial property, compared to a refinance of a standard 3-bed terraced house for example, it can often mean the time it takes to go from application to completion can be a lot longer and a far more drawn out process.
However, we have access to multiple semi-commercial property mortgage lenders that are able to use title insurance during the legal stage, which can mean completion takes place within as little as 1-2 weeks. Using these lenders can reduce application to completion times from potentially up to 12 weeks, right down to as little as 4 weeks.
What is Title Insurance and how does it work?
Title Insurance is an indemnity policy that covers for a lot of the legal enquiries that solicitors request for, which can take a lot of time to satisfy, one notably being the need for local authority searches which can typically take 4-5 weeks to come back. Other things such as, sight of building regulation sign off and planning permissions can also be covered, as well as any potential defects with the property’s land registry title deeds.
The lender works on the basis that, when the client first purchased the property a full title investigation was completed, so any serious defects would have been outlined during the initial purchasing stage. The Title Insurance then covers the lender for any of these issues arising that could end up effecting their loan.
Title Insurance is a lender only protection, because the client should have been made aware of any issues when originally purchasing the property and have their own cover in place where necessary.
There is no restriction to the loan size and we have been able to complete on £1 million+ loan sizes within 2 weeks of the mortgage offer being issued, thanks to the use of title insurance. In some instances you can find these cases complete quicker than a bridging loan.
Just to re-iterate, this quick title insurance service only applies to remortgage cases.
Do I have to pay a higher interest rate to benefit from this quick service?
No, the same lenders that use title insurance are some of the most competitive lenders in the market. Being able to complete on a semi-commercial mortgage within weeks while still benefiting from market leading rates, makes it a very attractive proposition for our client’s that own these semi-commercial properties.
How can Advocate Finance help?
We are Semi-Commercial Property experts here at Advocate Finance, so if you require finance on your existing semi-commercial property within a matter of weeks, please contact me and I’ll see if I can find a solution for you; whether it is block of 100 units or only 10. As always, we assess each case on it’s own merits tailoring a solution to your individual needs.
We provide a FREE assessment on all our services.
Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
