“Commercial Real Estate is property used solely for either for own business purposes (owner-occupied) or for the investment purpose (leased to either tenants or owner himself to conduct the business). It includes retails, offices, industrial, Hotel & Leisure, Student Accommodation, shopping centre etc. It provides income, as well as some capital appreciation, for investors.”
Why makes Esteema CRE Financing ‘DIFFERENT?
‘Commercial real estate financing is complex expertise, especially when it needs bespoke financing structuring and where the traditional method does not work. Our expertise in real estate & corporate financing & legal structuring support any financing structure for the special need. We have helped numerous complex matters, where traditional finance cannot be competing with.’
Esteema Specialist Finance | Other Traditional Finance | |
|---|---|---|
| ✓ Any Type | Retails, offices, industrial, shopping centre Student Accommodation, Hotel & Leisure etc | No |
| ✓ Any Purpose | Purchase, Refinance, Re-Structure | No |
| ✓ Any Borrower | UK & International | No |
| ✓ ANY SPV | UK or Offshore | No |
| ✓ Any Location | UK or Globally (Selected location) | No |
| ✓ Multi-Currency & Cross Border Funding | Yes | No |
| ✓ Loan Size | No Upper Limit | Very Restricted |
| Leverage | Up to 80% | Very Restricted |
| Interest Rate | from 2.00% + | From 5%+ onward |
| Any Special Reasons | ✓ Non-Recourse ✓ No maximum age ✓ Any Legal Settlements | No |
Esteema Special Pricing
Small CRE Loan
Less than £5M
Rates from:
3.5% PA
Up-To
65% Loan to Value
Large CRE Loan
More than £5M
Rates from:
2.5% PA
Up-To
65% of Loan to Value
Portfolio / Mixed
(No upper Limit)
Rates from:
2.5% PA
Up-To
65% Loan to Value
Key Factor Affecting the Commercial Real Estate Financing
Borrower Profile
✓ Personal & Business Profile
✓ A&L and Income Profile
✓ Experience & Track Record
✓ SPV Structure & Location
Collateral Profile
✓ Assets Types (Residential / Commercial / Mixed)
✓ Sales & Rental demand
✓ Location
✓ Covenant type / terms
Loan Service Strategy
✓ Loan to Value
✓ Current / Potential Rental income
✓ Gross / Net Rental Income
✓ Covenant Financial Strength
✓ Lease terms/break clause
Commercial Real Estate Finance Guide
Commercial Real Estate Finance Documents
- KYC: ID, Address proof, Personal & Professional History, and credit report for all the Borrower, Director, Partners & Major Shareholders
- SPV: Corporate Structure, Directors, Shareholders, UBO, and registered address
- Money Laundering Documents: Assets & Liability Statements, Income & Expenditures Statements, Equity (deposit) proof
- Income Proof: Last 3-year accounts/tax return, 3 Month Bank Statements (Personal & Business)
- Collateral: Full descriptions, brochure, valuation report (if available), tenancy schedule (if applicable), lease agreements
- Purpose: Purchase, Refinance, Restructure, Investments, Developments, Business purpose, Refurbishments
Commercial Real Estate Finance FAQs
How Much Can I Borrow?
Borrowing against the commercial property will depend on whether it is Owner Occupied or Rented/Leased. In case, it is owner-occupied, the loan will depend on the profitability or EBITDA generated to service the loan. Alternatively, if the commercial property is rented, the loan amount will primarily depend on the annual rent being received by the tenant.
Can I Take Out a Commercial Mortgage on Interest Only?
Yes, commercial mortgages are available on interest-only or with a full capital repayment option.
What are Regulated Commercial Mortgages?
Commercial mortgages become regulated if 40% or more of the property is to be used as or in connection with a dwelling. This occurs where a property is used to both live in and trade from.
Can I Borrow Against Leasehold Property?
Yes, our commercial mortgage products are available for leasehold properties.
Commercial Real Estate Finance Costs
The following costs should be considered at the time of availing the Commercial Real Estate Finance:
- Arrangement Fee: The arrangement fee or the facility fee, is usually charged by the lender as a set-up fee for the loan
- Exit Fee: The fee is payable to the lender when repaying the loan
- Broker Fees: These are the fees payable to the Broker for finding the best lenders and managing the application to completion
- Valuation Fees: This is the fee that has to be paid to the valuer, who shall be instructed by the lender to furnish a report on the collateral/project
- Legal Fee: Usually, the borrower would have to pay the legal fee for their own solicitors as well as the lender’s solicitors fee
Completion Timeframe
We always aim to bespoke the ‘Financing Time Plan and Finance T & C, to meet the individual requirement. Our standard indicative timeframe :
- Initial Finance Terms: We usually provide Initial Finance Terms within 24-48 hours.
- Emergency Finance: We can complete the finance within 48 hours in case of any emergency or distressing situation.
- Standard Finance: We usually complete Standard Finance within 4-6 weeks.
Notes: Financing time frame & Finance T &C are always subject to providing all satisfactory documentation, full credit underwriting, valuation and legal.
Jargon Buster
Please refer to the Knowledge Bank section for more information
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