Commercial Mortgage to Purchase Business Premises for a Lettings Agency

This case study shows how we helped a successful lettings agency secure a 75% Loan to Value (LTV) Commercial Mortgage, allowing the business to buy neighbouring premises and bring multiple operations under one roof.

The Challenge

Our client owned several successful businesses, including a well-established lettings agency, all operating from separate rented premises.

When the building next door to the lettings agency became available for sale, they recognised an opportunity to purchase a permanent base for their businesses.

The asking price was £385,000, and due to strong local demand there was little scope to negotiate a lower purchase price.

Although the purchase made excellent commercial sense, the client had limited funds available for a deposit. Securing a high Loan to Value Commercial Mortgage was therefore essential to make the acquisition possible.

The client needed a funding solution that would:

• Finance the purchase with a high Loan to Value
• Use the strength of their existing businesses to support the application
• Allow multiple businesses to operate from one location
• Reduce long-term rental costs by owning their own premises

Our Solution

Positive Commercial Finance worked closely with the client to build a strong funding proposal.

Using the accounts from the client’s various businesses, we demonstrated both the strength of the trading performance and the affordability of the proposed borrowing.

The application was submitted through the client’s newly formed property company, which would purchase the building and lease it back to the trading businesses.

Importantly, we showed the lender that the combination of business profits and the savings generated by no longer paying rent to third-party landlords comfortably supported the mortgage repayments.

This gave the lender confidence to approve a 75% Loan to Value Commercial Mortgage on competitive terms.

Deal Structure

• Loan to Value (LTV): 75%
• Interest Rate: 3.67% over Base Rate*
• Arrangement Fee: None
• Term: 20 years

*Interest pricing reflected the market at the time the facility completed.

The Outcome

The client successfully purchased the neighbouring property and brought several businesses together under one roof.

Owning the premises has reduced their overall occupancy costs, provided greater long-term security and created an additional investment asset within their property company.

This case study demonstrates how a Commercial Mortgage can help business owners move from renting to owning, improving both operational efficiency and long-term financial stability.