Commercial Mortgage for Business Premises Purchase

In this case study, Positive Commercial Finance arranged a Commercial Mortgage for Business Premises, enabling a well-established accountancy practice to purchase the offices it had previously rented.

The Opportunity

Our client had operated a successful accountancy practice for more than 10 years.

Although the business was profitable and financially stable, it had always traded from rented offices. The directors decided it was the right time to purchase their own premises and invest in the future of the business.

The Challenge

The client wanted to secure the highest possible level of borrowing so they could preserve cash for day-to-day operations and future growth.

To achieve this, we needed to present a strong lending proposition that demonstrated:

• A consistent trading history.
• Healthy financial performance.
• Affordable mortgage repayments.
• Long-term business stability.

The goal was to secure competitive finance without reducing the company’s cash reserves.

Our Solution

Positive Commercial Finance carried out a detailed financial analysis before presenting the business to a carefully selected panel of commercial mortgage lenders.

We obtained five indicative mortgage offers, giving the client a choice of funding options with different rates and repayment structures.

After reviewing each proposal, the client selected the facility that offered the best combination of flexibility, affordability and long-term value.

Deal Structure

• Loan Amount: £168,750
• Loan to Value (LTV): 75%
• Term: 25 years
• Interest Rate: 3.67% above Bank Base Rate (4.42% pay rate)
• Arrangement Fee: None
• Early Repayment Charges: None

The Result

The commercial mortgage enabled the client to purchase their own trading premises while keeping valuable cash within the business.

Monthly mortgage repayments were lower than the rent they had previously been paying, improving long-term affordability.

In addition, the facility allowed unlimited overpayments without penalty, giving the business the flexibility to reduce borrowing more quickly whenever cash flow allowed.

This case demonstrates how the right Commercial Mortgage for Business Premises can help established businesses transition from renting to owning while maintaining financial flexibility.