Many businesses and individuals have invested in either residential or commercial property – either as the principal object of their trading activities or as part of a broader investment strategy.
The business case is straight forward. Property investment provides a steady income stream from tenants and leaseholders, whilst also typically offering appreciable capital investment. As What Investment magazine suggests, investment in a physical asset such as property generally offers a hedge against inflation and a tangible asset that may be expected to return a consistent and predictable income.
Types of investment property
Investment properties come in all shapes and sizes – and Funding Track has experience in arranging finance across all property types. That includes:
- houses which have been converted into flats;
- houses in multiple occupation – so-called HMOs – where individual dwellings share the use of kitchen and/or bathroom facilities;
- student lets;
- properties which might be described as “semi-commercial” – such as flats or other residential accommodation incorporated above shops, restaurants and other retail outlets; and
- any commercial investment property which is let to tenants on a long-term fully-repairing and insuring (FRI) lease for between 10 and 25 years – types of property include offices, retail units, industrial buildings, and business and retail parks.
Use of property finance
Property investment finance is often raised to assist with the acquisition of an investment property;
Alternatively, if you already own the property, raising funds against the property may be a useful way of refinancing the investment or of raising additional capital with which to extend the portfolio and buy further property.
The rate of interest you may be offered on this type of loan varies, but is typically in the range of 3% to 5% above the Bank of England base rate.
As an alternative, lenders do offer fixed rates of interest, commonly for 2,3 or 5 years and at Funding Track we can arrange a quote if this is an alternative you wish to consider.
Your access to funding
When helping you secure the property finance you need, we use our unique 9-Step “Access to Funding” System. This is a system we have devised and developed having worked with thousands of clients over many years.
And we use this System every time we work with a new or existing client. The nine crucial steps in the System include:
- a ‘Deep Dive Evaluation of your precise funding needs, with the result that we both understand your funding requirements, and know how we can help:
- our unique “Six Stage Funding Analysis” of your application. This is the “secret sauce” and it enable us to speed up the response times from potential lenders and so increase your chances of success; and
- the “Loan Approval” stage when your funding is approved and loan documentation is issued. We continue to be involved, liaising with lenders, solicitors and valuers to ensure the successful completion of your deal and a smooth release of funds.
Funding Track has the expertise and experience of arranging property finance for many clients – so you might want to let us work our magic for you, too.