Has anyone got any experience with buying commercial leasehold property.
Tips on how easy it is to resell. How long a leasehold do people think I should accept.
And what about financing the deal, will a bank be preared to look at it given that it is only leasehold and not a freehold? Will the standard 70% rule apply?
The deal I’m looking at is CF+ with a strong tenancy agreement in place but is $1m+ so want to cover as many angles as possible.
Hi Paul,
Only a couple of the banks will look at leasehold property and you would most likely be looking at a maximum LVR of 50-60%, depending on the location, tenant, length of lease etc. What sort of commercial property is it? You could probably get a higher LVR through private money, but this would be far more expensive. I hope this is helpful.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.comCameron, Thanks for the quick feedback. 40 yr leasehold approx $60kpa. Current tenant is into 2nd yr on 5yr lease at approx $200kpa, two 5 year options. Property is on market for $1.25m.
Looks attractive but don’t like the idea of tying up 40% or more of the value.
Within 5kms of CBD of major capital.
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