Does anyone know the answers to the following questions?
What is the best rate for a commercial mortgage on a property like Rodney Parade?
What's the longest term for a mortgage on such a property?
Can the Council or Newport Live borrow at preferential rates to a Trust Run sports club?
Given the best combination of the above, and the worst, what would be the minimum/maximum monthly repayments?
Could an interest only option be available?
Colin
Re: Mortgage costs
2I asked a mate about this. His business is often quite involved with commercial property dealings.
His answers in bold.
His answers in bold.
jonescmj1 wrote:Does anyone know the answers to the following questions?
What is the best rate for a commercial mortgage on a property like Rodney Parade?
Currently ranging from 2% to 3%
What's the longest term for a mortgage on such a property?
Likely to be considerably longer than a normal domestic mortgage. Estimate: at least 60 years
Can the Council or Newport Live borrow at preferential rates to a Trust Run sports club?
Yes, though given the current low rates the benefits may be only slight
Given the best combination of the above, and the worst, what would be the minimum/maximum monthly repayments?
He felt we'd be talking a big bucks valuation, given the size of plot and location.
He asked about the existence of covenants protecting the use of land as obviously that might eliminate interest from developers.
Could an interest only option be available?
Colin
Re: Mortgage costs
3Thank you! I won't respond immediately, because I have for the first time in ages, been on the 'falling down water, celebrating my upcoming birthday on a 'non-school' night,JonD wrote:I asked a mate about this. His business is often quite involved with commercial property dealings.
His answers in bold.
jonescmj1 wrote:Does anyone know the answers to the following questions?
What is the best rate for a commercial mortgage on a property like Rodney Parade?
Currently ranging from 2% to 3%
What's the longest term for a mortgage on such a property?
Likely to be considerably longer than a normal domestic mortgage. Estimate: at least 60 years
Can the Council or Newport Live borrow at preferential rates to a Trust Run sports club?
Yes, though given the current low rates the benefits may be only slight
Given the best combination of the above, and the worst, what would be the minimum/maximum monthly repayments?
He felt we'd be talking a big bucks valuation, given the size of plot and location.
He asked about the existence of covenants protecting the use of land as obviously that might eliminate interest from developers.
Could an interest only option be available?
Colin
Last edited by jonescmj1 on September 27th, 2020, 10:21 pm, edited 1 time in total.
Re: Mortgage costs
4Apart from any interest rate differential, borrowing under the Council’s umbrella would negate the need for a deposit. Commercially you could have to find as much as 30% of the purchase price, and in many instances more.JonD wrote:I asked a mate about this. His business is often quite involved with commercial property dealings.
His answers in bold.
jonescmj1 wrote:Does anyone know the answers to the following questions?
What is the best rate for a commercial mortgage on a property like Rodney Parade?
Currently ranging from 2% to 3%
What's the longest term for a mortgage on such a property?
Likely to be considerably longer than a normal domestic mortgage. Estimate: at least 60 years
Can the Council or Newport Live borrow at preferential rates to a Trust Run sports club?
Yes, though given the current low rates the benefits may be only slight
Given the best combination of the above, and the worst, what would be the minimum/maximum monthly repayments?
He felt we'd be talking a big bucks valuation, given the size of plot and location.
He asked about the existence of covenants protecting the use of land as obviously that might eliminate interest from developers.
Could an interest only option be available?
Colin
Re: Mortgage costs
5The WRU have taken a loan that the regions will have to repay.The Wolf wrote:Maybe now is the time for the WRU to sell Rodney Parade in these troubled times. I can smell a profit to be made here.
Re: Mortgage costs
6But the WRU don't have to pay off any loan - they get the regions to do that.The Wolf wrote:The WRU could sell Rodney Parade and pay off any loans and still make a profit on the sale. After all Rodney Parade is worth a lot more than they paid for it.Willthiswork wrote:The WRU have taken a loan that the regions will have to repay.The Wolf wrote:Maybe now is the time for the WRU to sell Rodney Parade in these troubled times. I can smell a profit to be made here.
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