new to commercial property

[vincent man]

Hi all
i'm new to the board

I need a few pointers from you experts. I currently own 3 houses all let . However i've decided not to buy another, and try my hand at some commercial property . Could anyone give me some tips on -:

best lenders for commercial property and current rates

what are the most common expenses paid by the landlord

how oftain does a seller " hold paper " or give a second mortgage
as 75% ltv still leaves a huge sum to find in commercial property purchace

and any other tips

thanks!

vincent man

[Tax Accountant]

I think that commercial is a lot better than residential, subject to the following observations:

(1) The values are normally larger than residentials.
(2) Value is often dictated by the rental yields, especially so with long leases.
(3) Buy only in an area where it is easy to find tenants.

On the positive side, there are fewer voids, no responsibilities for repairs or other maintenance, less problems with rent arrears as the tenant's business is at stake if they fall into arrears, 75% business asset taper relief for CGT after only 2 years as opposed to 5% after 3 years (rising to max 40% after 10 years).

70% to 75% mortgages are common and lending is at approximately 1.5% to 2.0% over bank base rate.

Ramnik

[Editor]

For general information on investing in commercial property see:
http://www.landlordzone.co.uk/comprop.htm