When running a business, it may happen that we find a nice service premise to buy, but we do not want it to be bought by a company only as a private person based on business income. However, if part of this place is intended for services, we have several solutions in this case and it can be done with a home loan. In this entry, however, we will only deal with the service and commercial premises in full.
The first important matter is what part of the property is the service part because banks usually do not make problems if it is 30-50%.
We can apply for financing at one bank
At the moment and this is Good Finance Bank, which does not cause problems with financing the service premises with a mortgage loan.
Such an application is submitted in the same way as an ordinary, i.e. we collect income documents together with the applications. The rest are documents regarding real estate and the only difference is the delivery of the survey because the service premises need a quote to be done at an external company.
Bank for commercial purchase loans requires that the client have a minimum 20% own contribution and it is essential that the property be standard, i.e. the best ground premises are financed in good locations. Unusual and hard-to-sell properties, unfortunately, cannot be secure and if we are not sure whether a given property is acceptable, just contact the bank and send photos for evaluation.
The pricing terms for such a loan
Do not differ from those of mortgage loans, so we can expect a margin of 3-3.5% and quite high insurance (convertible into a commission). The loan period is the same as for housing loans, which is why it can be an advantage over purely corporate loans, where it is usually 15-20 years.
Good Finance Bank counts its capacity very well and accepts even the transition from an employment contract to other forms of employment without waiting for the required 12 months, e.g. in business operations. It is enough to document employment in a similar industry and continuity of employment.
In this case, where we switch from an employment contract/contract to B2B contact on business, we can apply for financing almost immediately. This bank is also one of the few that counts a lump sum very well and at high turnover, you can easily get a large loan for the maximum period. Of course, it all depends on the ability and the documents presented.