Commercial Mortgage for Lettings Agency

Deal Structure

75% LTV

Interest Rate 3.67% over base rate

No arrangement 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 location and demand there was little room for manoeuvre in terms of the asking price, therefore a high Loan to Value Commercial Mortgage was essential.

With the last three years of accounts from our clients various businesses, we made a case to a lender to provide a loan to his newly formed property company, at 75% loan to value, to enable the purchase of the building, which would then be rented to his trading businesses.

We were able to demonstrate that a combination of the trading profit and the money saved from not 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.