Re-structure from Trading Business loan to Commercial Investment loan

Deal Structure

75% Loan to Value

£275,000 loan facility

Interest Rate 8.65% fixed for 5 years, Interest Only

2% Lender Fee added to loan

10 year term

Deal Summary

Our client’s loan with a High Street bank dated back to when he bought the Freehold of his convenience store.

He recently accepted an offer from a third party who wanted to purchase the business element leaving our client retaining the freehold which he would rent to the purchaser of the business.

Our client approached his bank to inform them of the transaction and to ask them to consent to a lease which would be drawn up between him and the purchaser, but he was told by his bank that despite his loan conduct being perfect and that he was deemed to be a good customer, they would need the loan repaying in full and they couldn’t support him going forward, due to the proposed structure.

The client contacted us explaining his predicament and his concern was that “all banks are the same, so if mine won’t do it, who will?”

We approached a number of lenders whom we knew would consider this type of loan, and subsequently presented our client with a choice of indicative offers.

So, from initially being concerned that he could not go ahead with the sale, he now had a choice of different solutions. The client chose to proceed with the lender that not only allowed them to repay the original loan but would also allow them to take out some extra cash that they could then use to invest in their other businesses.

Contact Simon Parkinson

07775 671 680

[email protected]