Commercial Investment Loan Refinance for Convenience Store Freehold

Deal Structure

• Loan to Value: 75%
• Loan Facility: £375,000
• Interest Rate: 5.79% fixed for 5 years (Interest Only)
• Term: 10 years

Deal Summary

Our client owned the freehold of a convenience store and had an existing commercial loan with a High Street bank dating back to the original purchase of the property.

After receiving an offer from a third party to purchase the trading business, our client decided to sell the business while retaining ownership of the freehold. This meant they would continue to own the property and receive rental income from the new operator.

However, when the client approached their existing bank to request consent for the lease arrangement, they were informed that the loan would need to be repaid in full. Despite maintaining perfect payment history throughout the loan term, the bank considered the facility to have changed from a trading business loan into a commercial property investment loan, which no longer fitted their lending criteria.

Finding the Right Commercial Investment Loan Solution

We reviewed the client’s circumstances and identified lenders who specialise in commercial property investment finance.

Using our experience and lender relationships, we presented the case to suitable funders who understood the client’s position and the transition from owner-operated business premises to an income-producing commercial investment property.

The client received multiple indicative offers and was able to compare a range of solutions before selecting the facility that best suited their objectives.

The final Commercial Investment Loan allowed the client to:

• Repay the existing High Street bank facility
• Retain ownership of the freehold property
• Continue receiving rental income from the new business operator
• Release additional capital to invest into their other business interests

By restructuring the original trading loan into a suitable commercial investment facility, we helped the client create a more flexible long-term finance structure while unlocking further investment opportunities.