Commercial Mortgage for an Office and Retail Property Purchase

Positive Commercial Finance specialises in arranging Commercial Mortgages that are tailored to each client’s circumstances. This case study shows how we helped a family purchase a mixed-use commercial property, enabling one business to expand while providing the perfect location to launch a brand-new venture.

The Opportunity

Our client had successfully operated an accountancy practice for more than 15 years.

At the same time, his wife was preparing to return to work as a hairdresser after raising their children. She spent months searching for suitable commercial premises but struggled to find anything in the right location at an affordable rent.

Then the ideal property became available.

It occupied a prominent position on the local high street and included both office accommodation and a retail unit.

Initially, the clients assumed buying the property was unrealistic, particularly because the new hairdressing business had no trading history or accounts.

Looking Beyond the Obvious

Rather than focusing on the new business alone, Positive Commercial Finance looked at the family’s overall financial position.

We proposed purchasing the property in the clients’ own names.

The office space would be leased to the established accountancy practice, providing the lender with reliable rental income from a well-established business.

Meanwhile, the ground-floor retail unit would become the home of the wife’s new salon, allowing her to launch the business from a prestigious high street location.

This structure created a much stronger lending proposition while helping both businesses operate from the same property.

Finding the Right Lender

We prepared a detailed funding proposal and approached a number of commercial mortgage lenders, inviting them to compete for the transaction.

Although several lenders were interested, the clients chose one that offered the best overall package rather than simply the lowest interest rate.

The chosen lender provided:

• A higher Loan to Value (LTV).
• A longer repayment term.
• No arrangement fee.
• Flexible overpayments and lump sum reductions.
• An initial capital repayment holiday while the new business became established.

The combination of flexibility and affordability made it the ideal long-term solution.

Deal Structure

• Loan to Value (LTV): 75%
• Interest Rate: 3.67% over Bank Base Rate*
• Arrangement Fee: None
• Term: 25 years
• Additional Features: Flexible overpayments, lump sum reductions and an initial capital repayment holiday

*Interest rates reflected market conditions at the time the facility completed.

The Result

The clients successfully purchased the commercial property and brought both businesses together under one roof.

The established accountancy practice continued to operate from modern office space, while the new hairdressing salon opened in a prime high street location without the burden of paying rent to an external landlord.

This case study demonstrates how the right Commercial Mortgage is not just about securing finance. By understanding the client’s wider objectives, Positive Commercial Finance created a funding solution that supported two businesses, maximised flexibility and laid the foundations for long-term growth.