Boston Commercial Services Pty Ltd (ABN 87 114 658 070) CAPI Licence Number 409 456 759

You are here: Home / News / Why You Need Legal Advice to Secure a Commercial Mortgage

Why You Need Legal Advice to Secure a Commercial Mortgage

Working towards owning your own commercial property has many positives, you can:

  • Pay yourself to ‘rent’ your own space
  • Customise the building for your needs
  • Combine functionalities to streamline your process
  • Expand at your own pace
  • Sublet areas of your building, and more

However, despite its innocuous title, approaching a commercial mortgage is entirely different from that of a residential mortgage.

So what are the main differences?

Mainly, borrowers need a much larger deposit to secure a commercial property. While residential properties can be secured from as little 5 per cent, lenders usually demand a minimum deposit of 30 per cent of the purchase price, plus costs.

In addition, the use of your building is restricted by the mortgage you take – this means that your warehouse cannot necessarily become a retail outlet without earlier consultation with your lender.

Why will I need legal advice?

Commercial mortgages can present a minefield of options, opportunities and pitfalls.

To prepare a fair and accurate application for your commercial mortgage, you need legal counsel to assist in building your case to negotiate fees, repayments and terms of your contract.

Your legal counsel will be able to put forward your:

Trading history

Lenders want to know that your business can afford the mortgage on the property and the repayments

Use of the property

To judge the risk, lenders will often approach the application for a commercial mortgage in two ways: 1) What sort of property is it? 2) What sort of business is going into it?

Not all properties or businesses are made equal, so these factors will be considered to estimate the inherent risks and opportunities if in the unlikely event your business can no longer afford the repayments

Interest on whether the property will be sublet

While many buildings lend themselves to subletting – such as an office block – taking on a property like this changes the structure of your mortgage. Instead of being a pure owner-occupied mortgage, it moves into an investment threshold. Understandably, there are risks associated when the borrower relies on a level of occupancy to make repayments. Conversely, a property with a high occupancy rate is a more attractive option for lenders.

How legal advice can help you

With adequate representation, your legal counsel can put your business and its growth in good stead with:

Industry expertise

We understand the landscape and know how to access opportunities that benefit you and your business

Advocacy

We take the time to understand your business and property needs for now and in the future. Whether you plan on turning the property into your corporate headquarters, manufacturing plant or storage facility, we can guide your application to help you make the best, informed decision

Clear explanations

Understanding the intricacies of commercial mortgages, we can decipher what is expected of you and help you communicate exactly what you’re prepared for when it comes to settling on a contract

Don’t leave your commercial mortgages to chance, get expert help from the start. For more information on how legal advice can help you secure the ideal mortgage, talk to our debt collection experts and call us today.

Get In Touch

Get an obligation free assessment now


Get in touch with us

Talk to our experts in Debt Recovery, Legal Services and Finance Solutions

  • I have known the principal of the BOSTON Group (Derryn HARRISON) as well as key staff members (including Ben GOWER) for well over 2 decades and have been using their professional services for myself as well as for Powerhouse Logistics Pty. Ltd. on a regular basis, not only in Sydney but on a national basis.

    At all times BOSTON have been extremely pro-active, attentive, courteous and professional with all matters we threw at them. Their advice has always been extremely sound and commercial and I find them to be a "breath of fresh air" within the legal fraternity and have no hesitation whatsoever to highly recommend them.

    Peter Brueckner

    Powerhouse Logistics Pty Ltd (CEO)

  • Expect A Star has worked with The Boston Group for 10 years. In this time we have appreciated the ongoing support of Boston for all of our collection and legal requirements. Like most businesses cashflow is critical to ongoing success and growth, with Boston we have found a partner who are an extension of our business and play a key part in our cashflow management. The Boston Group bring a level of expertise to our business which is valuable and coupled with their excellent customer service we look forward to continuing to work with them for many years to come.

    Ryan Meldrum

    Former CEO

  • I have been using the services of The Boston Group and their legal entity for over 11 years. During this time I have found their service to be impeccable, delivered with the utmost professionalism and integrity. The vast majority of cases that I have placed with Boston were far from straightforward, requiring legal acumen and delicate handling. Having used all methods available without success to procure payment, I confidently placed these matters into their safe hands. In all instances a successful outcome was achieved.

    Mark Parish

    Credit Manager

  • SNP Security has had the pleasure of working with Boston Commercial Services for the past 11 years. Boston has played an integral part in the continuing success of SNP Security’s low DSO’s, 90 Day % Debt & of course Bad Debts Written Off.

    Amanda Griffiths

    National Administration Manager

Boston Commercial Services is well known debt collection agency in Sydney, Melbourne and Brisbane who has long experience in debt collection.