Finance for storage units

You may be able to build self-storage units in a standard industrial unit. If you are setting up in a busy city centre you may need to convert an existing structure such as an old school or factory. If you are working in a more rural area, and plan on offering large-scale storage, barns or warehouses may be required.

Getting the finance to lease or buy your property will be essential.

Commercial property mortgages

If you are leasing, we can work with you to find lenders prepared to offer funding to cover your initial costs - but we believe that a better solutions can often be found by buying your property with a commercial mortgage.

These are one of the most common forms of finance used to buy commercial property of all kinds, and they operate much like residential mortgages and are secured on the property itself. Generally, Commercial Mortgages allow you to spread the cost of your property over 15 years or more.

However, there are some significant differences compared with residential mortgages, including the fact that the rates and terms for a commercial mortgage are offered individually - and based on your business plans and projections.

Before they will make an offer, lenders will look at your business, accounts and projections and will set interest rates based on the level of risk they believe it presents. There will also be valuation, arrangement and legal fees and additional costs for the services of professional advisors which will add substantially to the initial costs.

Lenders will not offer 100% finance. Typical loan-to-value ratios for a new business with no trading history will be a maximum of 50% of the purchase price.

Commercial mortgage deals can be either fixed-rate or variable rate, and you may also be able to choose between a repayment mortgage option where you pay the capital and interest back each month or an interest-only mortgage, where you only pay the interest. If you choose this option, the lender may seek evidence of an appropriate investment policy that will cover the outstanding capital at the end of the loan term.

Refinancing an existing investment

If you already have property investments, property remortgaging or refinancing could help you reduce the costs, by letting you pay off an existing loan and replace it with a new one at a lower cost. As property appreciates in value, you could get a better deal by looking into this sort of funding.

Other advantages of refinacing can also include releasing the investment you have already made in your property and use it again in other areas of your business. For example, it could provide the means to buy additional premises to use for storage units.

Property investment solutions from Rangewell

With the high cost of property, a fraction of a percentage point can make a substantial difference to what you actually pay, while fees and penalties can complicate the position further - so getting expert help when you are setting up funding for your self-storage property will be crucial to the success and profitability of your business.

There are many different lenders who may be prepared to offer funding. Each has their own approach to interest rates and fee arrangements, and comparing them can be time-consuming and slow. At Rangewell, we work with lenders across the market to ensure that you have the financial solutions you need, saving you time and money in the long term.

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.