70% Loan to Value
£375,000 Loan Amount
Interest Rate 3% over base rate
1.5% Arrangement Fee
Our client had been trading out of a rented unit since incorporation, however whilst the unit was great for their business in terms of location, they were paying over the odds to be there, so when an opportunity came to purchase it from the landlord, they jumped at it.
The business was profitable and the Directors had a clean credit history which meant we were able to start our search at the cheapest end of the market – the High Street Banks.
We prepared an information package which was sent to the appropriate High Street lenders and invited them to “tender” for the business.
Our client took a Commercial Mortgage deal which offered the best mix of high LTV and cheap rates, which meant they benefited from the savings between rent versus loan repayments of approximately £25k pa, whilst also retaining cash within the business due to the low deposit required.
The transaction between our clients and the Landlord vendor was complicated and became protracted, however by us liaising closely with our client, the lender and the client’s solicitors, we were able to get the deal completed with the minimum amount of disruption to the client and their business.