Round-Up: November 2022’s Top Picks

November Commercial Round-up

Here are some examples of deals completed in November:

Holiday Let | £600,000

An Urgent Bridging Loan was agreed in January 2022 by Cornerstone Capital Finance Ltd. to allow the clients to settle a deferred consideration between relatives on a long-established family Holiday Home, which going forward was to be commercially marketed as a Holiday Let.

Clients over past 9 months have been working on upgrading and improving before making fully available to market for the 2023 season. Term Funding required to avoid need to extend Bridging Facility.

Utilising our strong relationship with Andrew Arnold at Cambridge & Counties, we presented the case on a relatively complex Trust Ownership with a projected income scenario and secured a £600k loan on a 20-year commitment.

Loan was completed before an extension to the Bridging Loan was required, and the client was delighted that we had both dealt with the initial urgent request at the start of the year, as well as delivered a long-term solution within the required timescales.

VAT Loan | £420,000

Accountants approached us as they had a client who was purchasing a large Industrial factory for £2.1m.

Funding for the purchase was in place, but the acquisition was subject to VAT of £0.420m, which client didn’t have and the funder for the purchase couldn’t provide. No other security was available, which could have resulted in the deal not being able to proceed.

Utilising our contact Stewart Bruce at Proplend who specialises in unsecured VAT loans for property purchase, we were able to secure the Bridge Funding, pending Prolend reclaiming the VAT on behalf of the company.

Clients were delighted, and the deal was successfully completed.

Commercial Trading Mortgage | £264,000

A Firm of chartered surveyors was looking to purchase a new trading premises to move from renting to ownership.

80% LTV was initially secured (£264,000 over a 15-year term). The applicants then managed to get the purchase price reduced by £10k, and Barclays did not amend their terms, meaning the end sanction was at 84%LTV.

BTL Remortgage | £211,903

A long-standing, returning client came to Cornerstone Commercial Finance looking to remortgage her previous main residence as their current fixed rate deal was coming to an end.

Despite significant changes in the market during the application period, through working closely with the lender we managed to secure a 5-year fixed rate of 3.39% for the client.

Second Charge Mortgage | £85,000

Two sisters were looking to obtain a second charge mortgage on their residential property, with the funds being used to purchase a Buy to Let investment property.

Only one of the sisters was working (Self-employed), the other sister was unemployed and receiving universal credit.

A second charge mortgage of £85,000 was obtained over a 25-year period, providing them with the deposit needed to purchase their first investment property together.