What questions to ask?

If you have a client looking to finance a semi-commercial investment, here are seven key questions to ask:

Semi-Commercial Investment
1. Is there any residential element to the security?
- If so what is the expected split of value?
2. Are all units of the property occupied?
- If not, would the client be able to get a lease & AST in place on completion/prior to completion (draft lease to be in place upon completion)
3. What is the value of the security?
4. What is the rental income?
- Residential Income?
- Commercial Income?
5. What is the term of the lease on the commercial element?
- Are there any break clauses?
6. Who are the commercial tenants
7. What is the Structure of purchase? E.g. Ltd co or Sole name etc.