Property loan for lettings agency

Deal Structure

75% LTV

Interest Rate 2.4% over base rate 

1.5% lender fee 

20 year term 

Deal Summary

Our client operated several businesses including a lettings agency out of various rented premises. 

The building next door to the lettings business became available for purchase but cash for a deposit was tight.

The property was on the market for £385k and due to the desirable location there was little room for manoeuvre in terms of asking price, therefore a higher loan to value was essential. 

We obtained the last three years accounts from our clients various businesses and made a strong case to a lender for a loan to the newly formed “property”company at 75% loan to value to purchase the building which would then be rented to the “trading” businesses.

We were then able to demonstrate that a combination of the trading profit and the money saved paying rent to third parties was more than sufficient to repay the loan at the higher LTV.

The client now has the benefit of all his businesses being under one roof whilst paying less overall rent.

Contact Simon Parkinson

07775 671 680

[email protected]