Commercial Property

Indoor Wheelchair Ramps

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Enabling wheelchair users to access any part of a building is essential – whether it is a residential or commercial property, this hands back independence. The best way to achieve this is via indoor wheelchair ramps, which help users to overcome obstacles such as staircases and door steps. There is a whole host of regulations that should ensure the freedom of movement for a wheelchair user, however unfortunately this isnt always the case, which is why these ramps are so important.

Indoor wheelchair ramps are essential for allowing users to experience the theatre, cinema, restaurant or any public building that hasnt considered disable access in their building construction. Enabling those in a wheelchair to enjoy a high quality of life has never been easier.

The Disability Discrimination Act (DDA) is a piece of legislation that protects the civil rights of wheelchair and mobility scooter users. This states that users should have access to commercial buildings such as shops, cafes and banks, as well as in education, employment and public transport.

Granting access to employees in wheelchairs has never been easier for businesses than with modern ramps and access systems. These ramps are incredibly lightweight yet strong and resilient, as well as being quick to set-up which is crucial in the event of a fire or emergency. There are further regulations that consider whether a building conforms to health and safety and provides a means of escape in case of emergency too – more information is available on our website.

Another crucial aspect is to ensure that any wheelchair ramps are well maintained and serviced. This is so that when the time comes for the equipment to be used it doesnt let you down. This is obviously paramount for emergency escape scenarios. The most reputable of access providers will be able to repair and service ramps and related products to ensure the peace of mind of all parties concerned.

The DDA states that an employer has a duty to ensure reasonable adjustments are made to ensure that an individual is not disadvantaged in the workplace. This includes the physical aspects of a workplace, such as access. Infringing this act can have serious ramifications for an employer, so if you are a business owner ensure you implement wheelchair ramps and access systems for your existing or potential wheelchair using employees.

Chartered Surveyors In The Algarve Portugal

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Buying a property in Portugal can be quite a daunting process, especially if the buyer does not speak Portuguese or has no knowledge of local business practices or market conditions. For most of us, buying a property abroad will represent one of the largest investments of our lives and, as such, we will want to be certain that this investment is well founded. The sensible approach for any would be buyer is to employ the services of an accredited local Chartered Surveyor who would be able to conduct a Pre-purchase Building Survey.

This type of survey is an inspection of all accessible areas of the property. It also covers the legal description of the property, so that the buyer’s lawyer may be sure that the property description given by the seller or their agent is, in fact, correct.

More importantly a Pre-purchase Building Survey covers the construction processes and materials used to build the property, as well as the quality of these building materials. Also identified is the property’s actual condition, including items away from the main build area such as out buildings, boundary walls or swimming pools. Structural defects are duly noted, as are defects in the general condition of the property and its various elements; these may include dilapidation or water ingress. The Chartered Surveyor is also able to provide an estimate as to the approximate cost of repair.

If the property is considered to be in a poor condition, an Insurance Reinstatement evaluation can be requested to provide an assessment of the complete rebuilding cost, including demolition and professional fees.

A Pre-purchase Building Survey includes the testing and evaluation of common services such as electricity, plumbing, drainage, irrigation and heating. Additionally, a local Chartered Surveyor will be able to provide the buyer with a useful insight into planning and development matters, including boundary issues or the identification of any illegal additions to the property.

As well as the Pre-purchase Building Survey, a Chartered Surveyor will be able to provide a prospective buyer with other types of valuation report. Such reports should be made in accordance with the requirements of the Royal Institute of Chartered Surveyors and may be used for a number of reasons. For example, reports can be prepared for finance purposes such as to support a mortgage or loan application. Where institutions require a substantial professional indemnity insurance cover for the purchase of commercial property or development sites, a report from a licensed Chartered Surveyor will usually be required prior to application.

A Chartered Surveyor is able to provide professional assurance to the buyer in Portugal, enabling them to complete their property purchase with confidence. So, if you are considering investing in the Portuguese property market, make sure to employ the services of a registered Chartered Surveyor before you buy.

Common Commercial Real Estate Contract Contingencies

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Just like residential real estate contracts, Dallas commercial real estate contracts have their share of contingencies. In short, contingencies are found in most real estate contracts and are essentially escape clauses for both the buyer and the seller.

Each party wants to make sure they are protected in the real estate contract, so real estate contingencies are a common occurrence. They often make the contract much easier to handle for both the buyer and the seller, as it provides them with an opportunity to back out of the contract for a number of reasons.

Although both residential and Dallas commercial real estate contracts both have contingencies, the contingencies themselves are quite a bit different. The following list details some of the common contingencies found in Dallas commercial real estate contracts:

When purchasing a parcel of land for Dallas commercial real estate, the contract may be subject to the approval of the buyers attorney. Because Dallas commercial real estate contracts may be decidedly more in depth than residential real estate contracts, waiting on the approval of your attorney when buying Dallas commercial real estate is quite common. It is also common to have a contingency that is based on a business professionals partner or investor, as it is important to get approval from everyone involved before the contract is finalized.

Many commercial real estate contracts include contingencies that are based on financing approval for the buyer. For tracts of land, this contingency may include approval of a legal survey, if one has not already been done. In addition, a buyer will likely want to include in the purchase agreement some language about obtaining necessary permits and zoning for the commercial property.

When speaking of commercial tracts of land, there may be a contingency with verbiage regarding liens on the property. In particular, the purchase of the land will be contingent on no environmental cleanup liens.

It is common to have a contingency based on: the buyer achieving a loan of at least 75 percent of the purchase price of the Dallas commercial real estate property; the buyer being satisfied with the inspectors report; and the buyer being satisfied that the property can be remodeled or renovated to his or her satisfaction. In other words, the buyer will likely include a series of contingencies based on the use of the commercial property and how it can and cannot be used.

The use of a realtor qualified in commercial real estate is crucial, as he or she will be able to guide you when making a commercial real estate transaction. Real estate companies, like VIP Realty, have a plethora of highly qualified and experienced realtors who have extensive experience in dealing with commercial real estate contracts. It is important to never enter into any type of real estate purchase agreement, whether residential or commercial, without advice from a trusted realtor and real estate attorney, as they will be able to best protect your interest in the real estate transaction.

Indian Real Estate Market Problems And Prospects

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India is a very large country of South Asia, the second most populous country in the world and the seventh largest by extension. The Indian continent from many centuries has been well known for its rich culture and commerce. To make your real estate investment more and more beneficial for you in this country, you need to rely on a network with a lot of real estate experience. Through an operating platform of a realtor investment becomes easier and safer for you as the firm helps to find the property in India.

The real estate market in India is undoubtedly growing local demand for housing space and office incredibly intense, but the market has to be regarded as emerging market for investors because the laws concerning foreign direct investment in the real estate market in India are so restrictive that the benefit of the real estate sector of India is far from straightforward.

This article is an attempt to combine some of the facts and figures which we hope will help anyone who joined the business of Indian real estate. There were changes made to the public good laws concerning foreign direct investment in the back of the real estate sector in February 2005 now mean that the Indians passersby (most commonly designated NRIs) and companies Overseas (CBOs for short) can invest up to 100% in the housing sector.

The government of India also has some rules in place that allow foreign investors to buy commercial property in India. if these properties are to be used by the company for business purposes. Most of the projects where FDI is allowed in a loop period of the investment of a minimum of 3 years to prevent speculative investment, but the good news for companies or NRIs who want to achieve in the real estate market of investment in India is that investment in smaller projects is now a real possibility. Before the IDF is allowed only in projects on sites larger than 100 acres, this was reduced to 25 acres. For individuals who wish to incorporate the real estate market in India is the easiest way to buy into an investment fund.

Changes to laws relating to FDI and the real estate industry in general that were announced back in 2005 rules of the investment fund of the Sierra relaxed to the point where many experts believe a sector of the investment company of real estate (REIT) could now emerge.

Meanwhile there are a number of attractive and transparent funds available from reputable investment houses that do not prohibit individuals hassle free entry into the real estate market in India. In terms of state of the real estate market in India in general and Mumbai property in particular care must be taken when acquiring any land or real estate because the fact of registration of title is not updated and independent legal advice should be taken at each stage of the process that buying property in India.

If anyone has a definitive guide to the process to purchase real estate in Mumbai, he/ she can maximize the benefits to the maximum. But a proper professional guideline is necessary before any investment.

How Folding Gate Can Keep Your Property Windows And Doors Secure

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To make your property secure, Installing folding gate on your window and doors is one of the essential security steps to keep intruders out. Folding security gates are easy to install, offer a high level of protection against break ins, and look good. Folding gate permanently attaches to the sides of an door and window and has a drop pin in the middle for extra stability. It can be used as pair folding gate for wider opening. It can be pivoted on vertical gate rails when an opening is necessary. Here’s all you need to know about boosting windows and doors and doors security with folding gates.

If you’ve ever been the victim of a break in, or seen it happen to a relative, friend or neighbour, you know what a devastating occurrence it can be. Not only is there the loss of valuable possessions but also the mess to clear up, the lingering fear, the tedious hours spent at police stations, and the sense of violation. The sad fact is, though, that most burglaries would never have happened if the property owner had taken some precautions by boosting window and door security, for instance.

Simply put, you are ten times more likely to be burgled if you dont have basic security – even something as simple as putting strong locks on your doors and windows and doors will keep your house much safer. But why stop there? If you really want to make your property virtually impregnable, look into installing folding gates on your windows and doors.

Perfect for both commercial and domestic applications, folding security gates give your unparallel windows and doors and doors security by sliding into place behind your windows and doors and creating a strong barrier against intruders. Also known as sliding gates, retractable gates, collapsible gates and concertina gates, they slide away behind the curtains when not in use. These gates are also available for doors.

These gates are crafted from a range of materials with Powder coated Steel being the material of choice owing to its unmatched blend of strength and durability.

A great feature of these gates is that even when in position they allow the flow of air for ventilation. In other words, they keep the bad guys out while allowing light and fresh air in. In the summer, you can leave your windows and doors open with no reduction in security.
What’s more, folding gates require minimal maintenance and take up little space, just a little bunching at the sides and some headroom above.

You can choose from a range of folding gates of varying security levels depending on your needs. Using gates in a home which is usually occupied for example doesn’t require the security level of business premises containing valuable possessions and which may be unattended overnight or over the weekend.

The great thing is that they’re a visual deterrent. So the sight of these gates will probably dissuade the would-be burglar from even attempting to break in. This should prevent the damaged windows and doors that can result from a botched break in attempt.

Another benefit of these folding gates is that they look good, too. You can get them in a range of style including vertical, horizontal or diamond lattice designs. They’re usually supplied in a powder-coated white finish. You can however choose a powder coating of any standard colour with either a gloss or matt finish. This way, you can match your new gates to the existing decor of your property. In other words, folding security grilles form an effective barrier against intruders, while maintaining the original appearance of the building.

This ability to offer security while maintaining the original appearance of the building is especially useful for the offices of professional firms such as solicitors, accountants and estate agents. For such firms, it’s important to maintain a professional image at all times but also need high security as they keep sensitive client documents on the premises. Folding gates work perfectly here. They slide into place to offer protection when the office is closed and they slide out of side when not in use.

Folding gates also offer ease of installation. They’re usually installed internally, cause minimum disruption, and generally don’t require planning permission.

Installing folding security gates is the best thing you can do to make your property safe and you can choose matching gates for your doors. Check out the wide range of accessories and hardware for folding gate installation available online and request a quotation today from a reputable online supplier and make windows and doors security a reality for your home or business. As a final plus, you may well get a reduction in your insurance premiums.

Arbitration And Conciliation Act In India An Overview

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Arbitration, an age old concept in India, is a part of Alternate Dispute Resolution (ADR) with other popular ADR processes like Conciliation and Mediation. In India Alternate Dispute Resolution is governed by the Indian Arbitration and Conciliation Act 1996 which is created on the lines of the Model Law of the UNCITAL (United Nations Commission on International Trade Law). This article identifies certain problem areas of the Arbitration Laws of India, highlights some of the revolutionary decisions by Supreme Court and points out some of the misuses as well.
Problem areas:
Over the past decade, the lofty objective of enacting this Act stands substantially diluted due to various reasons as follows:
a.Inability of parties to exercise their rights explicitly provided under the statute
b.The overdependence on retired judges as arbitrators
c.Expansive delays
d.Considerable expense
e.Legal professionals treating arbitrations as an extension of the court proceedings and converting them to lengthy trials.
f.Exercise of appellate power under Section 34 of the Act – a virtual practice to challenge each and every award irrespective of whether it fits within the limited grounds specified in Section 34.
These render nugatory the stated intent of creating an arbitral process that is fair, efficient and capable of meeting the needs of the specific arbitration resulting in an explosion of litigation as against the stated intent of reducing the same.
Revolutionary decisions:
The Supreme Court, while dealing with such rival contentions has held that interpretation of a contract may fall within the realm of the arbitrator. The Court while dealing with an award would not reappreciate the evidence. An award containing reasons also may not be interfered with unless they are found to be perverse or based on a wrong proposition of law like an error apparent on the face of the award. If two views are possible, it is trite, the Court will refrain itself from interfering. Jurisdiction of the court to interfere with an award made by an arbitrator is limited. On contrary to this, in recent times, the courts were impelled to have fresh look on the ambit of challenge to an award by the arbitrator so that the award does not get undesirable immunity.
The Court also quoted it is correct that courts shall not ordinarily substitute their interpretation for that of the arbitrator. It is also true that if the parties with their eyes wide open have consented to refer the matter to the arbitration, then normally the finding of the arbitrator should be accepted without demur. There is no quarrel with this legal proposition. But in a case where it is found that the arbitrator has acted without jurisdiction and has put an interpretation on the clause of the agreement which is wholly contrary to law then in that case there is no prohibition for the courts to set things right.
While the conclusion may not be so relevant, it is the reiteration of the aforementioned principles that is reassuring. One can only hope that this would guide the hands of all judicial authorities while entertaining appeals under Section 34.
Misuse:
Misuse of the process of Arbitration by companies and parties is also not unheard of and is even prevalent in international commercial arbitration where the arbitration agreement or the arbitration clause may stipulate sole and mixed arbitral commissions. These depend primarily on whether the disputes are to be referred to a single arbitrator or the parties may appoint an arbitrator each with an umpire presiding over the arbitration commission.
Problems as discussed again arise when the party to the agreement in power may force the other party or parties to sign an arbitration agreement or arbitration clause created to cause pecuniary or territorial discomfort to ensure a quicker or unfair settlement. The conclusion is obvious. If arbitration is to survive, ADR lawyers must insist on institutional arbitration to ensure Alternate Dispute Resolution becomes a better alternative to Court litigation.
The USP of resolving disputes through Arbitration was its relative simplicity, economy, speed and privacy. However, over the time it has been observed that Institutional Arbitration through Associations or Societies like The Indian Council of Arbitration (ICA) , Federation of Indian Chambers of Commerce and Industry (FICCI), FICCI Arbitration and Conciliation Tribunal (FACT), The Associated Chambers of Commerce and Industry of India (ASSOCHAM) etc. is the best since they conduct Arbitration as per rules laid down which have stood the test of time and where the reputation of the Arbitrator is impeccable while at the same time the parties to arbitration know very clearly what the cost of the said arbitration be.
It is unfortunate that most litigants and parties do not opt for institutional arbitration which has time and again proven its mettle in providing fast, economical and completely impartial resolutions of disputes within the ambit of strongly laid down process and guidelines.

Commercial Property Loan How to get it Approved

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Commercial Property loan is obtained through several basic requirements that are somewhat different from the residential mortgage loan requirements.

When you invest in a piece of commercial estate, you generally have to take out a mortgage to pay off the cost, just like with a residential purchase. Yet, the factors determining whether or not you will be approved for an investment property loan are somewhat different and the requirements are more demanding. Commercial mortgage lenders will look at several financial aspects including a property appraisal, a credit check, the down payment, and the Debt Service Coverage Ratio.

A property appraisal is required to determine the market value of the commercial building and accompanying land. The appraisal keeps the lender from inadvertently loaning you more money than the real estate is worth, thereby reducing the risk of loss for the lender. Appraisals are also conducted during residential home purchases, but the price-deciding factors are different. A commercial property’s value is based not only on the condition of the roof, the plumbing, and other systems, but also on the size, location, and accessibility of the place.

With an investment property mortgage loan, you will also need to demonstrate a good credit record. Of course good credit is a plus in residential mortgages, but because commercial properties generally cost much more than the residential properties, the credit requirements tend to be more stringent. In addition, checking your credit history and score, lenders will want plenty of income and asset documentation to make sure you will be able to make your mortgage payments. If it is your own business that will occupy the business space, the lender will want the proof of the profitability of your venture.

Down payments are another determining factor in whether or not you will be approved for a commercial property loan. In the residential world, borrowers can often get away by contributing very little and sometimes even nothing up front in the form of a down payment. The big price tags on official and business properties, however, makes lenders very cautious as the risks are much greater. Large down payments are usually required for an investment property mortgage loan, with the minimum being 20 percent of the price. In many cases though, the average seems to be a down payment of 30 to 45 percent. You are then provided with the loan of the remaining amount of the purchase price. The amount you are loaned compared to the actual price is called the Loan to Value ratio (LTV) and is a very commonly used percentage in the mortgage world.

Finally, you will be approved for a mortgage based on the Debt Service Coverage Ratio (DSCR) of the commercial real estate. This is the amount of money the realty generates each month from rents and other fees (the net cash flow) versus the amount of the monthly mortgage payment (the debt service.) This ratio helps lenders to determine how much you can reasonably afford to pay on your commercial property loan each month. Most like to keep the ratio between 1.1 and 1.4. A ratio of 1.4 means that for every dollar you pay in mortgage payments, your property should be generating $1.40. Your revenue would therefore be larger than your debts, and you would theoretically be able to repay your loan.

Certain commercial lenders may have additional loan requirements, which are not listed here, but the basics remain the same for all. Be sure to shop around and ask each lender how he or she determines its approval. You can be competitive in the commercial property loan market by doing your homework and coming fully prepared to the negotiating table.

Acquiring commercial property loan is not an easy task as there are many stringent and basic requirements to be fulfilled prior approval. For detailed information on investment property loan and lucrative commercial property dealings, you can visit, http://www.kiscl.com.

Nehru Places Location Profile

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Nehru Place is one the most active commercial markets of South Delhi. It is also considered to be a major hub of the Information Technology industry. This place has been named after the first Prime Minister of India, Pt Jawahar Lal Nehru. The main commercial district of Nehru Place was built in the eighties, and it comprised of several 4-floor buildings, that flank a large pedestrian courtyard, built over an underground parking. Although this is area is not well-maintained, most of the original structures here are still in use.

Nehru Place is also very famous for things related to technology like computer and all new kinds of equipments. In fact, each and every part of computer both software and hardware are available here in all kinds of price ranges.

No wonder this place is widely regarded the center for small-scale IT services. It is a hub for all forms of It hardware, such as personal computers, servers, networking equipment, software, documentation services, and allied services.

Commercial realty market of Nehru Place
Commercial realty market of Nehru Place is undoubtedly one of the most sought-after markets of Delhi. This place has several offices which have been working since very long. You will not only find retail shops for computers, clothes, electronic goods, spare parts etc but also banks, a cinema, and all other kind of offices and property in Nehru Place. It is often considered as a computer enthusiasts shopping area. Besides that it is also a hub of firms that deal exclusively in used and secondhand computer hardware, as well as small, one-room shops that sell software titles. The best thing about Nehru Place is the pervading informal atmosphere, like a flea market or a bazaar that deals in high-technology products.

One also hears from a lot of people that their office is located at Nehru Place. Another reason for the same could be the strong transport system that connects it to other parts of Delhi. Lot of Chartered buses commute to and fro from Nehru Place to other parts of Delhi. In fact, of late one can see a tremendous increase in the number of business executives traveling on work to Nehru Place. To tap the potential of these business travelers, two well-known luxury hotels have come up in the area – The Park Royal InterContinental and Crowne Plaza Surya. Besides that, Nehru Place is also home to a number of hotels in the medium budget range. It also houses paying guest and service apartments. Other interesting things about Nehru Place is that it is dotted with small eateries that cater to the office going crowd, apart from the number of street food shops/vendors which are remain very popular with the executives.

As far as geographical terms are concerned, this place boasts of a sprawling shopping arcade with a massive bus terminal, plying buses to almost every part of the city and outside it. In addition, its location is pretty close to most of the railway stations in Delhi, chief amongst them being the Nizamuddin Station which is just a 30 minutes drive away, and about a one hour drive from the main New Delhi Railway Station. The New Delhi airport is also not very far from the place and would be about a 45 minutes drive, making it easily accessible from all major corners and centers of Delhi.
The residential market of this place does not have much to offer. This place is mainly known and is famous for its commercial realty. So, all those looking for a commercial property in Delhi, it is one place which you should definitely consider. It will not only provide you a buyer for your product but also a healthy competitive environment with many sellers around.

Ease of access:
30 minutes drive from Nizamuddin Railway Station
One hour drive from New Delhi Railway Station
Nehru Place has its own bus terminal, popularly known as Nehru Place bus terminal which is quite close to Paras Cinema hall.

Areas that are close by to Nehru Place:
Okhla
Kalkaji that has been name after Hindu temple of the Hindu Goddess Kali
Sarita Vihar
Govindpuri
Srinivaspuri
Chirag Delhi
Not very far from Lajpat Nagar, South Ex

Mortgage Loans After Bankruptcy What Options Are Available

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Bankruptcy has its uses, with crippling debts cleared the principal one. But there is also a price to pay, with many lenders preferring not to lend to those who have taken such action in the previous 2 or 3 years. So, what chance of getting a mortgage loan after bankruptcy?

Actually, the chances are not all that bad, though it does take some time and effort to find a mortgage deal that is affordable. After that, the application needs to be very strong before there is any chance of getting mortgage approval despite bankruptcy.

As negative as such a move is, there are still investment opportunities, loans and mortgages available to those who have been declared bankrupt. What exactly are the mortgage loan options available to those seeking to buy property? Well, there are 5 to consider.

1. Bad Credit Mortgages

As the name suggests, these mortgages are specifically designed for those with poor credit ratings. This includes those seeking mortgage loans after bankruptcy. Lenders who specialize in these charge higher interest to make the whole deal feasible.

Also, the repayment term is usually longer to help make the mortgage more affordable, by lowering the size of the monthly repayments. This can help greatly in getting mortgage approval despite bankruptcy, though the regular criteria of a large income, healthy debt-to-income ratio and good job security are also important.

2. Bankruptcy Mortgage

Once again, the name gives the nature of this mortgage loan away. This option is specifically for those who have been declared bankrupt but are looking to buy a home and begin rebuilding their credit rating all at the same time.

Under the terms of the loan, all existing debts can be forgiven or restructured, thus allowing the borrower to save the down payment and make mortgage loans after bankruptcy more attainable. The type of bankruptcy (which Chapter) affects the timing of the applications – anything from 1 to 4 years after bankruptcy.

3. Federal Housing Administration (FHA)

One of the best options is to approach the FHA for mortgage funding, but there are some compromises to accept in the process. For a start, the choice of property is limited to those that are covered by the FHA scheme, so the property most desired is often excluded.

Securing mortgage approval despite bankruptcy can be tricky, and while backing from the FHA makes it easier, with mortgage loans available just one year after bankruptcy (Chapter 7), it is still necessary to satisfy the criteria set by mortgage providers first.

4. Standard Mortgage Loan

It is also possible to get a standard mortgage loan after bankruptcy, but there are some conditions required to do so. For example, a mortgage note must be produced to confirm the status and details of the bankruptcy. The mortgage note highlights the fact that the loan is legitimate.

However, securing mortgage approval despite bankruptcy comes at a price, with a down payment of at least 20% of the purchase price required, as long as any legal fees. This can translate to as much as $30,000, so it can take time to prepare to buy the property.

5. Corporate and Industrial Mortgage

This option is provided to those who wish to buy commercial property, rather than a new home. Getting a mortgage loan for these purposes is also affected by bankruptcy but as long as the business plan accompanying the mortgage application is sound, approval is possible.

Repayment terms of the mortgage range from 2 years to 30 years, so the repayments can be kept very low, and very affordable.

Lara Sawyer is the author of this article. She works successfully as a financial on Bad Credit Loans Guaranteed Approval. She publishes articles about Guaranteed Bad Credit Loans and others at http://www.fastguaranteedloans.com

Commercial Mortgage Modification

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In todays crumbling, commercial real estate market, both borrowers and lenders find themselves in quite a precarious predicament. Borrowers struggle to make their commercial mortgage payments, while lenders are crippled by the increasing number of defaults on commercial property. Right now the best solution to this problem is commercial mortgage modification.

Commercial mortgage modification is the process of renegotiating the terms of a commercial loan. This is done typically by reducing the interest rate or monthly payment on the loan. Other benefits to the borrower may include an extension of the loan term, a forbearance or moratorium on payments, and of course an alternative to foreclosure.

A commercial mortgage modification is about risk to the lender. A lender will only consider a modification if a borrower is in default or at risk of defaulting. The most important thing the lender will look at in determining whether or not to modify a commercial note is cash flow. One very important calculation used in determining cash flow is called the DCR or Debt Coverage Ratio. This ratio is used by the underwriters to determine if a modification can be approved. If a property is breaking even, meaning the income generated is equal to the operating expenses, the DCR would be equal to 1. If commercial property has a positive cash flow, meaning the income the property generates is more than sufficient to cover the mortgage payment and all of the operating expenses, the DCR is greater than 1. If the property is losing money, the DCR would be less than 1. A lender will most likely not modify the commercial note, if the property already has a DCR greater than 1. Commercial lenders writing new commercial loans will most likely require a DCR of 1.25 or greater.

The most common form of payment reduction seen in a commercial mortgage modification is when the lender converts a principal and interest payment to an interest only payment. A lender may consider this form of commercial loan modification to help the borrower improve their cash flow. By only paying the interest on the loan, as opposed to principal and interest, the payment becomes more affordable for the borrower.

However, in extreme circumstances, reducing the mortgage payment to interest only is just not enough for a commercial property owner. If a lender sees that the borrower will still have negative cash flow even after reducing the payment to interest only, they may consider a reduction in the interest rate. Although the interest rate reduction may be temporary, it will help the borrower free up capital and maintain the mortgage payment on time. Although uncommon, lenders have lowered interest rates to as low as 1% even, to avoid an even more costly foreclosure.