Looking at the freehold of an existing child care centre in western sydney – I would like to know what the maximum lending ratio is on the freehold security and what lenders would look at the loan?
The majority of lenders are going to offer a maximum of 70% LVR but it may be possible to get up to 80%.
Can I ask if you'll be buying the business as well, or do you already run the business as a tenant?
In that case then the lender will treat this as a straight out investment purchase on your part. You will be required to show sufficient deposit and or equity to complete the purchase and cover purchase costs, stamp duties etc.
Your ability to service the amount you want to borrow will then be assessed based upon your current income, plus the proposed income from the lease, factored against your existing liabilities and living expenses.
You will need to apply for a commercial mortgage. Please let me know if you would like any further assistance.