Commercial finance

Commercial finance is often described as being complex and many brokers can be put off operating in the sector.

Stonepath Investments Ltd aims to make the commercial application to completion process easy for you as our clients by helping you through the process.

One of the main differences between commercial and residential lending is that commercial lenders usually require larger deposits. Loan-to-values are dependent on industry sector and the quality of tenant but, for loans up to around £500,000 an average maximum LTV is around 70%, although 85% is available.

The length of a commercial mortgage loan period is similar to residential with a maximum of around 30 years.

Arrangement and valuation fees are generally higher than residential, as are legal costs. Given the nature and complexity of titles and covenants on many commercial properties, a higher cost will be incurred, not only through the borrower's own solicitor, but in many instances the lender uses its own solicitor in parallel to validate the quality of the work. This cost needs to be factored in.

Stonepath Investments Ltds' proposition

The value of a broker within this field cannot be overstated, due to the bespoke nature of each commercial mortgage transaction. Commercial mortgage terms are not set in stone and the broker's role in the transaction is to know which lenders are likely to have an appetite for each proposal, and therefore to negotiate the best rate and terms.

The team at Stonepath Investments Ltd have strong relationships with leading lenders and longstanding experience in this specialist area. They are able to place deals smoothly and quickly, offering help and guidance along the way.

TCPA Use of Classes Order 2005	Use/Description of Development	Permitted Change
A1 Shops	Retail sale of goods to the public-shops, Post Offices, Ticket and Travel Agents, Hairdressers, Funeral Director and undertakers, Domestic Hire Shops, Dry Cleaners, Sandwich Bars- Sandwiches or other cold food purchased and consumed off the premises, Internet cafés and cyber cafés.	No permitted change
A2 Financial and Professional Services	Financial Services (Banks, Building Societies and Bureau de Change). Professional services (excluding Health or Medical Services) (Estate Agents and Employment Agencies).Other Services-Betting Shops. Principally where services are provided to visiting members of the public.	A1 (where there is a ground floor display window)
A3 Restaurants & Cafés	Restaurants and Café's - Use for the sale of food for consumption on the premises	A1 or A2
A4 Drinking Establishments	Use as a Public House, Wine Bar or other Drinking establishment. The primary purpose is the sale and consumption of alcoholic drink on the premises.	A1,A2 or A3
A5 Hot Food Takeaway	Use for the sale of hot food for consumption off the premises	A1 or A2
B1 Business	Offices other than in a use within Class A2 Research and development - Laboratories, studios Light Industry	B8 (where no more than 235m2)
B2 General Industrial	General Industry (other than classified as in B1). The former Special Industrial Use classes are now encompassed in the B2 Use Class	B1 or B8 ( where no more than 235m2)
B8 Storage or Distribution	Storage or distribution Centers	B1 (where no more than 235m2)
C1 Hotels	Hotels, Boarding Houses & Guest Houses. Development falls within this class if no significant element of care is provided.	No Permitted Charge
C2 Residential Institutions	Hospitals, Nursing Homes, Residential School and Training Centers. Use for provision of residential accommodation and care to people in the need of care.	No Permitted Change
C3 Dwellinghouses	Dwellings for individuals, families or not more than six people living together as a single household. Including students or young people sharing a dwelling and small group homes for disabled or handicapped people living together in the community.	No Permitted Change
D1 Non-Residential Institutions	Medical and Health Services. A Crèche, Day Nursery, Day Centers, Museums, Public Libraries, Art Galleries, Exhibition Halls, Non-Residential Education and Training Centers, Place of Worship.	No Permitted Change
D2 Assembly and Leisure	Cinemas, Concert Halls, Sports Halls, Swimming Baths, Skating Rinks, Gymnasiums, Bingo Halls and Casinos. Other indoor and Outdoor sports and Leisure uses not involving motorized vehicles or firearms.	No Permitted Change
Sui generis	For example: Petrol Filling Stations, Retail Warehouse Clubs, Amusement Arcades, Launderettes, Taxi Businesses, Car/Vehicle Hire Businesses and the Selling and Displaying of Motor Vehicles, Nightclubs, Theatres, Hostels, Builders Yards. There are many uses that are not specifically categorized by the four main use classes. These are classified as sui generis. We have illustrated some of the sui generis uses above, but the list is not intended to be exhaustive. Sui generis uses are their own specific use and their planning permission is normally required for any change of use.	No Permitted Change