Owner-occupier vs commercial investment mortgage: which one do you need?
The single most common mistake we see on Newcastle commercial mortgage enquiries is the wrong product applied for. An owner-occupier wanting a freehold for the business is not the same case as an investor buying a let asset, and the lender pool, the underwriting tests, the LTV and the rate range are all different. This piece untangles the two using three real-shape Newcastle examples: a Gosforth NE3 dental practice freehold, a Pilgrim Street NE1 office acquisition let to the buyer's own group company, and an Acorn Road NE2 shop with two flats above where the buyer's adult son lives in flat 1. Each one points at a different product, a different lender desk and a different underwrite.
This piece is in preparation.
The outline below is the planned structure for the full piece. Send a topic suggestion or a follow-up question to enquiries@commercialmortgagesnewcastle.co.uk and we will work it in.
Coming soon, full guide to the owner-occupier vs commercial investment decision for Newcastle buyers.
Outline
- The headline test: who actually trades from the property
- Owner-occupier underwriting: EBITDA cover, two-year accounts, sector
- Commercial investment underwriting: ICR, lease length, tenant covenant
- Worked example 1: Gosforth NE3 dental practice freehold (owner-occupier)
- Worked example 2: Pilgrim Street NE1 office let to buyer's group company (hybrid)
- Worked example 3: Acorn Road NE2 shop with two flats, family in flat 1 (regulated perimeter)
- Lender pool by product
- How to match your case on day one
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