Raw 02 - September 2008 - (Page 41)

Downton anD ali RAW Brian Downton I have worked in the financial services arena for some 26 years, having previously worked for National Westminster Bank, the last few years there working primarily with SME’s. Having left Natwest in 2000 and setting up on my own, as well as dealing with all areas of financial planning both business and personal, I now specialize in finding finance for Small to Medium Enterprises (SME’s) for the purchase of owner occupied commercial premises’. To buy or not to buy Especially in today’s market most small businesses will be thinking hard about whether to rent premises or to buy. There are a number of reasons that buying should be better then renting. • in my opinion the market for commercial properties has come off its peak, so today could be a good time to pick up a bargain. • Over a medium to long term you should hope to see a rise in the value of the property. • This can in turn help a business in the future to secure long term funds for business expansion. • As with residential Buy to Lets if you rent you are simply paying somebody else’s mortgage • Property ownership also removes the risk of large rental increases in the future • In certain circumstances a commercial property can be linked to the owners’ pension, making it a very tax efficient investment but also helping you plan for your retirement. Getting a Commercial Mortgage The commercial mortgage market has been less affected than the residential market during the current financial climate but lenders have had to refocus their activity. It is vital that when you are looking for borrowing you use the services of a commercial broker to ensure you get the best deal possible, and indeed find someone that will lend to you. Key lenders are the main high street banks who concentrate on lower risk lending but there are also lenders who will look at higher risk borrowers, for example someone with a less than perfect credit history. How much can you borrow? Apart from the funding for professional practices i.e. Dentists, solicitors, Accountants etc who may in some circumstances be able to borrow 100% of the purchase price, in most situations you need to be looking at a minimum deposit of 20% of the purchase price and 30% in a lot of cases. What evidence do you need If you have an existing business then a lender will need to see 3 years accounts if available plus a business plan. If your business is a start up then you will need to provide a business plan including projections for at least the first years trading. Summary At Downton and Ali Associates we have links to some of the major lenders in the commercial mortgage market and would be happy to look at individual situations for not only purchases of commercial property but also re mortgages to potentially raise more capital so please call us.We can also help and give advice on the production of business plans. Your property may be repossessed if you do not keep up repayments on your mortgage Openwork Limited offers insurance and investment advice on products from a limited number of product providers and advice on mortgages representative of the whole market we are committed to giving personal, face-to-face and obligation-free financial advice built around you and your circumstances tel: 020 8980 1989 Email: info@downtonandali.com 25 Roman Road, london, E2 0HU millionimpossible.com 41 http://www.millionimpossible.com

Table of Contents Feed for the Digital Edition of Raw 02 - September 2008

Raw 02 - September 2008 Contents Scott English Rachael Elnaugh Colin Stroud Heidi Weir Chris Wright Million Impossible Emma Thompson

Raw 02 - September 2008

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