Deal Structure
70% Loan to Value
£575,000 loan value
Interest Rate 2.35% over bank base rate
1.5% Arrangement Fee
20 year term
Deal Summary
Our client had been trading out of a rented unit since incorporation, however whilst the unit was great for their business in terms of location, they were paying over the odds to be there, so when an opportunity came to purchase it from the landlord, they jumped at it.
The business was profitable and the Directors had clean credit history which meant we were able to start our search at the cheapest end of the market, the High Street Banks.
We prepared an information package which was sent to the relevant High Street lenders and invited them to “tender” for the business.
Our client was attracted to the deal which offered the best mix of high LTV and cheapest rates, which meant that the clients benefited from the savings between rent versus commercial mortgage repayments of approximately £25k pa, whilst also retaining cash within the business due to the low deposit required.
The transaction between our clients and the landlord vendor was complicated and became protracted, however by us liaising closely with our client, the lender and the client’s solicitors we were able to get the deal completed with the minimum of disruption to the client and their business.
Contact Simon Parkinson
07775 671 680
Contact
Simon Parkinson