Owner-occupier vs commercial investment mortgage: which one do you need?
The single most common mistake we see on Bristol commercial mortgage enquiries is the wrong product applied for. An owner-occupier wanting a freehold for the business is not the same case as an investor buying a let asset, and the lender pool, the underwriting tests, the LTV and the rate range are all different. This piece untangles the two using three real-shape Bristol examples: a Whiteladies Road BS8 dental practice freehold, a Temple Quay BS1 office acquisition let to the buyer's own group company, and a Gloucester Road BS7 shop with three flats above where the buyer's adult son lives in flat 1. Each one points at a different product, a different lender desk and a different underwrite.
This piece is in preparation.
The outline below is the planned structure for the full piece. Send a topic suggestion or a follow-up question to enquiries@commercialmortgagesbristol.co.uk and we will work it in.
Coming soon, full guide to the owner-occupier vs commercial investment decision for Bristol buyers.
Outline
- The headline test: who actually trades from the property
- Owner-occupier underwriting: EBITDA cover, two-year accounts, sector
- Commercial investment underwriting: ICR, lease length, tenant covenant
- Worked example 1: Whiteladies Road BS8 dental practice freehold (owner-occupier)
- Worked example 2: Temple Quay BS1 office let to buyer's group company (hybrid)
- Worked example 3: Gloucester Road BS7 shop with three flats, family in flat 1 (regulated perimeter)
- Lender pool by product
- How to match your case on day one
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