Guide To Real Estate Finance In UK

Posted by Nick Niesen on November 8th, 2010

It is real estate market, which has perhaps never witnessed any recession or stagnation. It is this sector, which has ever been prospering. And, needless to say that it is one of the best investment options.

However, it is not everyone?s cup of tea. Since it requires huge money, not all of us have that. When this is the case, it is this time when you need a real estate loan. And, taking a rescue to Internet can save you many things.

Since a real estate loan means huge money, you need to prove your credibility. If you have something to offer as collateral, the chances of securing a favourable deal improve grandly. This may also help you get a handsome rate of interest and a longer term.

Securing a real estate loan depends on three factors, credit history, repayment capacity and potentiality of the business you are going to start. If the three factors are in your favour, you will get a loan easy and fast. If they are not however, you may face some uneasiness.

Apart from credit history, repayment capacity and potentiality of business, there is one more entity, which affects the prospects of getting a real estate loan. It is the size of the property you wish to purchase or take on lease. Real estate properties can broadly be divided into three types: Class A, Class B and Class C.

A Class A property means a larger premier building with a high-profile location that is easily accessed. A Class A building has on-site management, an impressive lobby and amenities. A Class B building generally has good location, professional management and some amenities. Whereas a Class C space is no-frills. It is usually found in older buildings or converted industrial buildings, without lobbies or amenities

Once you have narrowed down your needs, you can start shopping around for a commercial real estate broker. However, you should not just take out the phonebook and start making calls. It would be a better idea to ask for recommendations from others, who have taken such a loan or leased their office space etc. People like Commercial real estate lawyers, bankers and architects, who work with commercial brokers can be a great help. You may also like to contact professional commercial real estate associations, which require its members to meet certain standards, for a list of brokers in your area.

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Nick Niesen

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Nick Niesen
Joined: April 29th, 2015
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