20:20 Innovation logo

Funding for property landlords

Purchasing and leasing property is a popular investment for many and can be a great way to add an additional revenue stream to a business. But leasing property doesn't come without its challenges.

If a tenant pays late, or maintenance issues arise, it's the property’s landlord that will have to cover the costs, which can eat heavily into their cashflow.

With interest rates continuing to rise, landlords will be seeing their monthly mortgage repayments skyrocket. Combined with the value of commercial property going down as a result of the pandemic’s introduction of hybrid working, cashflow is a rising concern for property landlords.

Easing your client’s cashflow concerns or enabling them to take advantage of growth opportunities by purchasing new property, can be made easier with property finance.

What finance solutions are there for property landlords?

Property loans are secured against the asset being purchased and are generally broken down into three categories – bridging loans, development loans and commercial mortgages.

Here are the top funding solutions available for property landlords:

Bridging loans

A short-term borrowing solution, bridging loans are used to help property developers and other businesses raise the funds needed to purchase various types of premises.

This is an ideal type of loan for buyers who urgently need funds to finish a development, buy a property at auction or as a temporary measure until the property qualifies for a more traditional mortgage.

Development loans

This type of loan provides enough funds to ensure that new development projects can be undertaken and completed, with capital drawn in tranches throughout the project to save on interest costs.

They are structured to run for the term of the project and are paid back once either the property has been refinanced into a more traditional mortgage or sold on to the end user.

Commercial mortgages

A commercial mortgage is a long term business loan. It’s ideal for those who need to facilitate the purchase, development or refurbishment of business properties.

Case study

Groceries & butchers business

A groceries and butchers business is a client of a partnered accountant with Capitalise.

When they saw that the property next door was for sale, it looked like the perfect opportunity as they had been wanting to expand.

With Capitalise, the accounting firm secured a commercial bridging loan of £265,000 for 12 months, so their client could purchase the property.

This fulfilled the accountant’s vision to help their clients grow and invest in expansion opportunities.

To help any of your clients with property finance, reach out to Capitalise’s Senior Property Funding Specialist Luke Lucas-Mudd.

Email: luke.lucas-mudd@capitalise.com
Phone: 07488 882 036

Capitalise - Find out more