Commercial Mortgage | 20 Years | £750,000

Our existing client purchased a commercial property via a bridging loan and undertook a heavy refurbishment to convert it into a multi-let commercial space. The build and refinance were delayed due to the COVID-19 pandemic and as a result the existing funder was looking to be repaid.

The property was 80% let which generated sufficient income to service a mortgage. However, after an initial application was declined due to the vacant possession value being down valued considerably (£700,000 against an expected £1,100,000), the client was under pressure to refinance or face losing the property.

Due to the down valuation on the Vacant Possession value not being sufficient to repay the existing loan facility, we had to source funding with a funder that would be prepared to work off the MV1 (Investment Value) of £1,165,000.

By using our relationship with Andrew Arnold at Cambridge & Counties Bank we were able to move quickly to get the valuation report reviewed by their credit team to ensure that they were happy with the property, and that they would accept a retype of the existing valuation that was completed for the initial funder.

By liaising with both the client and existing funder we were able to assist with the extension of the existing facility rather than the client losing the property from a repossession which has now been repaid in full.