I have been asked by few of my clients regarding the fees invovlved with commercial mortgaing. I thought I will share the breakdown online so it helps everyone.
Arrangement fees: Arrangement fees are typically added to the loan after the loan is approved but some lenders may request the arrangement fees earlier to cover their work in case you don't accept their offer. Arrangement fees are usually 1% -2% of the loan amount for loans up to £1 million.
Valuation Fees: A valuer will visit the property and write a report to the lender. Commercial valuations can start at around £500 for a simple case, the fees are based on an individualised quotation which is payable to the lender after an initial indicative offer has been accepted.
Legal Fees: You’ll need to pay both your own legal fees as well as the lender’s which can start at around £500 for each party.
Broker fees: A broker gives you advice specific to your situation and real estate and presents your case to the lenders. Their service is usually charged at up to 1% of the loan value.
We at VJ Financial solutions are charging 0.5% fees. Our fees is only charged to the client when we get the client a letter in pricipal. We work with a panel of 250 plus lenders and strive really hard to get the best deal for our client.
VJ Financial Solutions are an Independent Specialist Consultancy, we provide Commercial and Business Finance support to SME clients throughout the whole of the UK. Whether your business is well…
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