Buying out a relative on a commercial property

geecee

Hi All
My Father has a commercial property that he jointly owns with his brother (i.e. my uncle) in the South East.
This property was inherited from their mother approx. 10 years ago and was valued at approx. 300k at the time.

The property is now valued at 100k and currently unoccupied, but is in the process of negotiations on a 4yr9 month or 10 year lease. We are pretty confident that this lease will go ahead and rent would be around 1200 PM

My uncle wants to sell the property instead of accepting the lease. Whereas my father doesn't want to take such a loss on the property (after all the paid considerable inheritance tax on the property.

I am interested in buying out my uncles share in the property.

So questions:
What kind of loan do I need to approach the bank for this type of investment?
Would they even give one?
What would they look for leverage? Would the property itself be enough?

I have a mortgage on my current Dublin PPR (Value 250k, mortgage 155k) and would rather not leverage the equity in that against an investment property.

Thanks in Advance!

Spark Plug

Without a lease in place you'll find it challenging to get a loan. If you can get the 10yr lease it would help matters but once the lease is signed the property value is likely to increase from the current vacant possession value and your uncle is likely to want more money. Bit of a catch 22.

geecee

Thanks Spark Plug
Looks like my uncle has changed his mind and decided to go with the lease option... Pity as I thought it would have been a real bargain!