Commercial Property Finance - Products, Structure And Strategy

In this episode, Michael discusses the unbiased side of Title Splitting, and weighs up the pros and cons of the biggest strategy out there at the moment!  The calculation mentioned during the episode is the following: -  For example, if I have a block of flats that when split are worth £1m, then they are likely going to be purchasable for approximately £850,000 based on the average block discount that we see at the moment. So if you were to go for a commercial mortgage over the block of flats, then it would look something like this: - I HAVE LEFT FEES OUT TO KEEP IT SIMPLE Purchase Price - £850,000 Market Value when split - £1,000,000 Mortgage at 75% LTV - £637,500 Deposit - £212,500 So in the scenario of taking a standard mortgage, you need a deposit of £212,500. You also have to wait until the title is split and your fixed term is over before you can refinance to 75% of the £1m and access the further £112,500 tied into the deal. If you take the same deal, and use a Bridging Loan, then you would po