Loan or mortgage on commercial property

J

Johnb123

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I'm after advice (even pointing me to a relevant financial advisor). First time posting here so apologies if it is in wrong board.

I own a commercial property in Dublin and have a business loan on it that is approx 25% of value. It is let out to three tenants with good covenants. I am now looking to raise more money from the property possibly increasing to 50% of value of property. Can anyone suggest someone i could talk to about this..or if its is even likely? The situation is further complicated by fact I'm not resident in Ireland (although taxes paid and up to date in ireland).

Thanks John
 
Hello,

I think the chances of you getting an equity release on a commercial property, from a Bank, are very near zero.

Banks are not particularly hot on CRE proposals in general, at the moment. They are even less interested in providing equity releases on commercial properties, particularly to non residents (who might prove difficult to contact, when needed etc.), although they might look at allowing you use some of the equity in your property, to support a new transaction that the Bank is also to become involved in.

Are you in a position to disclose what the equity release is for?

Also, what's your definition of good covenants, with regards to your tenants?

Specialist Commercial Mortgage Brokers don't really exist, in Ireland. Its too small a market. Some General Mortgage Brokers will try and help, but few will have genuine experience, or relevant expertise.

Some of the non - Bank lenders might prove to be a better bet, although from what I hear, few are open to new business at the moment. While they can be more flexible than the traditional Bank lenders, they also tend to be 3% - 5% more expensive
 
thanks so much for this. equity release is just to improve another property and I want to go as close to interest only as I can for tax savings...but good to get a realistic response. j
 
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