Round-Up: June 2022’s Top Picks

Summer is here and so is our June round-up of commercial deals. Our team of commercial experts worked with a range of clients with a wide range of requirements, from first time landlords to well established property investment and real estate companies. These included:

Commercial Loan | £400,000

A client purchased through new limited company a site on which Costa Coffee developed, and signed a 10-year lease with no break clauses, with the first year being rent-free. The client approached us looking to secure funding to release capital towards future projects.

The rent-free period, along with some planning covenants relating to adjoining land, presented several challenges.

Working with Jon Roberts at Santander we were able to both demonstrate the client’s background and experience, and satisfy the issues surrounding the planning covenant.

A term loan was agreed at level which met the clients’ requirements.

Semi Commercial Investment | £340,000

A client was looking to refinance their semi-commercial property to benefit from a fixed rate, interest-only and to pull out equity to be able to purchase an onward opportunity.

We managed to raise 65% LTV, with completion taking place within 10 weeks. As a result, our client is now benefiting from increased monthly cashflow and certainty around their monthly repayments, alongside growing and improving their portfolio.

Semi Commercial Investment Mortgage | £317,475

A first-time landlord approached us looking to purchase their first semi-commercial property, consisting of six flats and two commercial units. However, all flats required works to be carried out before they could be rented, with an estimated twelve weeks to complete. The client was also keen to avoid a bridging loan due to costs.

Our team was able to source a semi-commercial mortgage at 75% LTV with the lender, granting the client 6 months to complete the works and rent out the residential unit. The income from the ground floor commercial units enabled us to meet affordability and avoid consuming a large amount of cashflow while the works are underway.

Overall, a satisfied client who successfully secured their first commercial investment on a competitive term product.

Bridging Loan | £255,726

After being served a 10-day notice to complete an auction purchase, a client approached us at Cornerstone Commercial Finance looking for a solution.

The client had agreed to a sale at auction while being in the process of applying for a mortgage with another broker, which was declined.

We arranged a bridging loan for the client with Family Finance for speed purposes and managed to complete it before notice had expired. We are now looking to exit the bridge for the client on a term loan.