The leasehold retail business sector is one of the largest if not the largest commercial sectors in the UK. There could be as many as 10 million leasehold businesses trading today with approximately 20% of them changing ownership each and every year. These kinds of business usually operate in the health care, leisure, licenced and retail sectors and are on every high street, however all can experience difficulty raising Leasehold Commercial Finance to buy or re-finance these kinds of business.
The lack of lender support for this huge market-place is surprising to many, the simple fact is, that there are very few options available when it comes to raising finance for either the purchase of a retail business or to raise capital for expansion purposes. The main reason that obtaining a loan in this sector is so difficult is that the length of lease available on the associated commercial premises is typically 21 years or less. This means that arranging a traditional mortgage is next to impossible without additional security, as lenders normally require about 40 years remaining on any lease once any loan has been paid back! Even with the comfort of a legal charge over another suitable, acceptable property many lenders will still not offer any kind of business loan, seeing them as high risk ventures.
To fund this kind of opportunity it is advisable to contact a specialist commercial finance broker with detailed knowledge of the leasehold business sector. The main reason for this is that the lack of competition and therefore restricted loan options, means that there are low cost and very high cost lenders operating in this sector. Therefore the chances of selecting the wrong Short Leasehold Lender are high and could prove very expensive indeed.
Visit our web-site for specialist business loan advice on buying or re-financing a Short Leasehold Business use a Commercial Finance Broker.
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Source: http://www.articlealley.com/article_562787_19.html