Lease Only Commercial Property Loans Overview
What do Lease Only commercial lenders look for? With Lease Only Commercial property loans, as well as sound commercial security, lenders focus on the lease and its terms.
It's all about the lease. The quality of the tenant, the lease term, any options, who pays outgoings, and
Property Location Generally standard commercial security in major metropolitan areas are preferred. One of the key tests for the lender with Lease Only loans is can the property be re let quickly if the property becomes vacant
Loan size Minimum loan size is $300,000. Most Lease Only commercial finance is done up to $1m. No maximum loan size.
Term From 1 year to 30 years. For Lease Only commercial property loans the lenders are looking at the income streams. There is normally a trade off between rate and term. Shorter term Lease Only commercial loans are normally done at cheaper rate,
- 75% up to $1m
- 65% unlimited, and assessed on its merits
Indicative Lease Only Rates As a guide, for standard Lease Only commercial properties, variable rates normally start at 4.6%