Commercial Mortgages and Remortgages
When considering mortgages or remortgages for commercial purposes the first distinction is whether the underlying property is residential or otherwise.
ONE: ResidentialWhere the property is residential the further distinction is whether the property is to be let or be developed either for onward letting or resale.
Purchase of residential property for letting
The "buy to let" market has already been established for some years and continues to play a major part in the residential property environment. Participants in this market will be very interested in the MMiToolkit for Property Investors which provides a detailed insight into the requirements of this market.
As regulation has mounted and this sector is seen as a "cash cow" by impoverished governments, so the legal aspects have become more and more specialised. McVey and Murricane have one of the largest "buy to let" practices in Scotland dealing with the whole range of potential purchasers; from the first flat for a new investor to the purchase of hundreds of units in the portfolio, knowledge of the market and its impact legally is vital.
Your client will have asked you to arrange finance to assist the acquisition of one or more properties and closely working with McVey and Murricane will greatly reduce the pressures upon you in advising your client of the potential pitfalls.
Homes for Multiple Occupation
Such properties can prove to be very fruitful investments for landlords but many lenders dislike them intensely. In addition, this is an area of letting which is subject to far more intrusive legislation and regulation than a standard "buy to let".
Dealing with these properties requires experience and knowledge. It is unusual for a purchase or remortgage of such a property not to encounter a problem with some aspect or another. Understanding issues that are "showstoppers" from matters that may be resolved is absolutely key to practice in this area. From both a lending and acquisition point of view, few practices have more knowledge in this tricky area than McVey and Murricane.
TWO: Commercial PropertyIf your client is looking to purchase or refinance commercial property, then the relevant issues multiply.
Why is this? Firstly, since the financial crisis, commercial property has not been the "plat de jour” for most lenders and where lending is possible, costs and conditions have been considerable for anything other than the very best covenant.
While matters have loosened up meaningfully in the last couple of years, nevertheless, commercial property requires the highest level of scrutiny. Many clients will come to McVey and Murricane from introducers with the prospect of a commercial property proffering a highly attractive rate of return.
In more cases than one might expect, the underlying paperwork indicates that the apparently attractive return actually obscures a "pig in the poke". This is not an area for the fainthearted and where expertise and knowledge are at a premium.
McVey and Murricane are acquiring and refinancing commercial properties for clients every day throughout Scotland. Your client may have existing legal representation but this is a specialist area requiring specialist knowledge.
Given the complexity in this area, our specialists are always happy to discuss with you matters which may arise in respect of the transaction which your client hopes to complete. Time and time again, McVey and Murricane received thanks from brokers and clients for resolving issues and problems that have confounded other less experienced solicitors.