COMMERCIAL MORTGAGES FOR SOLICITORS
In recent times, commercial mortgage is being extended to a wide variety of sectors in the economy, including the service sector. Thus a firm of solicitors or barristers trying to seek financing for setting up their office or business premises can also look for the option of commercial mortgage for solicitors. The commercial mortgaging activity is becoming very specialized in recent times. As a result of this, the mortgage services are offered at competitive rates and terms. For a specialised mortgage service, it is essential that the nature of business is properly understood. There are a class of commercial mortgage lenders who provide loan to solicitors, because they can better understand their business and make better valuations about expected income flow.
It is sometimes very difficult to obtain long term loans for setting up office premises for various such businesses by professionals. Commercial mortgage for solicitors provides a good opportunity, as it not only offers long term soft loans, generally extending up to 15-20 years, but to consolidate expensive short-term finances. No doubt, a number of factors will decide the valuation of a solicitors’ firm’s business. The quality and quantity of its professional manpower, the age of the firm, the area of operation are some of the important factors that lenders are interested in, apart from the details regarding clientele information, like percentage of corporate clients, income history in the past, profile of all the partners, etc.
High potential earning prospect for professional services firms is the most important reason for mortgage lenders to look at this sector quite favourably for extending mortgage credits. This is the reason why they are interested in firms operated by Chartered Accountants, MBAs, Solicitors, Tax Consultants, Investment and Financial Advisors, etc. With increasing awareness among general population as well as ever-increasing number of corporate and small businesses, legal issues arising in such businesses are not going to face any adverse impact of the slowdown in the economy, and these factors work to the advantage of these firms when they are looking for commercial mortgage for solicitors.
