Office Building Mortgages

As an investor, buying an office is not just about gauging the potential risks to help alleviate lender’s hesitations – it’s also about planning for investment and improvements that will help you let out your offices to generate a strong, reliable source of rental yield. 

Before you can invest in improvements or design changes, however, you’ll need to acquire the property in the first place. Acquiring an office building mortgage can be a challenge, but Rangewell can help. We’ll identify lenders that understand the commercial sector and offices in particular, then help you negotiate a deal that offers rates and terms suitable for your needs. 

For all forms of financing, choose Rangewell and make purchasing, improving or refinancing your office building more effective than ever.

Pre-purchase considerations

Before you pursue a purchase, consider the following points regarding office building investments: 

• Existing leases: Some office building listings are already tenanted by companies, meaning you can purchase the property and immediately begin to attract rental yields. However, you need to consider the leases in place – some will have break clauses and other issues you need to accommodate for before committing to the purchase. 
• Planning permission: If you’re buying a mixed block or a building that isn’t currently an office, you’ll need to assess the viability of acquiring planning permission. Some property conversions fall under permitted development, but each case is unique, and you need to make sure you can acquire planning if you want to attract lender interest. ;
• Condition: When assessing a listing, you need to consider the property’s overall condition – but also the state of any existing office space. The rise of remote working and subsequent return to work has changed how people use offices and driven demand for more appealing, accessible workplaces. If you’re buying an office building designed for an older era, you need to consider the associated costs of updating it if you want to appeal to potential tenants. 
• Location: The physical location of an office must be scrutinised in a world where businesses need to attract workers with more mobility and options than ever before. Offices in more remote locations may be cheaper to purchase but less likely to attract tenants.
• Infrastructure: In a similar vein to location, you need to consider the infrastructure available in the office building. Check the electrical design of the building, internet access, hygiene facilities, elevators and accessibility measures, parking spaces and local transport links. All of these things will have a significant impact on the desirability of the office from a tenant’s point of view. 

Once you’ve assessed all of the above, you’ll have a better idea of what the investment looks like and how much additional work you’ll need to do. This research will help you apply to lenders with more confidence and secure a mortgage that actually covers what you need, rather than buying an office property and realising you need a new loan to refurbish it. 

Get an office building mortgage now

Acquiring an office building means finding the right type of finance to support your purchase – but it carries unique considerations for you and the lender. We can help you find a lender that understands the commercial sector and can support an office building mortgage at rates and terms that work for you. 

If you’ve spotted a good investment opportunity in office property, don’t let a lack of funds hold you back. Start your application today.