Owner-occupier vs commercial investment mortgage: which one do you need?
The single most common mistake we see on Sheffield 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 Sheffield examples: a Nether Edge S11 dental practice freehold, a Heart of the City II S1 office acquisition let to the buyer's own group company, and an Ecclesall Road S11 shop with three 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@commercialmortgagessheffield.co.uk and we will work it in.
Coming soon, full guide to the owner-occupier vs commercial investment decision for Sheffield 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: Nether Edge S11 dental practice freehold (owner-occupier)
- Worked example 2: Heart of the City II S1 office let to buyer's group company (hybrid)
- Worked example 3: Ecclesall Road S11 shop with three flats, family in flat 1 (regulated perimeter)
- Lender pool by product
- How to match your case on day one
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