Deal Structure
- 67% Loan to Value (LTV)
- 25-year capital and interest term
- Interest rate: Base rate + 5.25%
- 2% arrangement fee
Deal Summary
Our client purchased and fully refurbished a Grade II listed building in the North West using bridging finance.
Once the refurbishment was complete and a tenant had signed a lease, the client planned to refinance onto a long-term commercial mortgage and repay the bridging loan.
However, during lockdown, the chosen lender withdrew from the commercial property market. This left our client without a refinancing solution and at risk of being unable to repay the existing bridging facility.
The client was introduced to us by an existing customer who we had previously helped with a similar situation. Following an initial online meeting, we reviewed the circumstances and identified suitable lenders who remained active in the commercial property sector.
We presented the client with several refinancing options and helped them select the most appropriate solution.
Due to the urgent timescale, we worked closely with the client, lender, valuers and legal teams to keep the application moving. When the valuation came in below expectations, we negotiated with the lender to secure a higher Loan to Valuethan their standard policy would normally allow.
We successfully arranged a commercial investment property refinance at 67% LTV, with a 25-year capital and interest repayment term.
The facility completed in time to repay the original bridging loan, allowing the client to avoid expensive default interest rates and additional charges.
This case highlights the importance of having access to specialist lenders and experienced advisers when refinancing complex commercial property investments.
If you need a commercial investment property refinance, Positive Commercial Finance can help identify suitable lenders and structure a solution around your property, circumstances and objectives.
