Fees
All Commercial Mortgages will be subject to the following fees.
Arrangment/administration fees:
Payable only to the Lender of the commercial mortgage for the administration of the case. This can either be paid on submission of the application or added to the loan amount, dependant on the type of case involved.
Application fee:
Payable to Source Commercial Finance who in turn pay the surveyor for the actual property valuation that is required by the commercial mortgage lender. The valuation fee must be paid on the application submission. Please be aware a more expensive valuation will be applicable on a commercial property in comparison to a similarly valued residential property.
Legal fees :
Source Comercial Finance will use the same solicitor as the customer (the practice must be 2 or more partners). All legal fees are payable by the customer, as and when required by their solicitor. Given the nature of the complexity of titles and covenants on many commercial properties, a higher legal cost will be incurred compared to fees incurred in the residential property market.
A small percentage of commercial mortgage lenders will also apply a booking fee. This is a charge for securing a certain commercial mortgage rate, usually only found on fixed rates. This must be paid on submission of the application.
We will charge a success only broker fee, normally 0.5%. This charge will be due on the successful receipt of a formal mortgage offer from the commercial mortgage lender. To discuss this broker fee in more detail please contact one of our brokers.
As well as a success only broker fee, we’ll normally charge 0.5% (plus VAT) administration fee on commercial mortgages, payable upon submission of the application. This fee is charged because of the complexity and significantly increased time needed when administering commercial mortgages.