As commercial investors know, arranging a commercial property refinance is often a complex process, and the pandemic has exacerbated this tenfold. And with many lenders withdrawing from the commercial finance market, existing investors face a difficult situation – as this client discovered.
The client:
In this case, our client was looking to refinance a semi-commercial property with a dry cleaners on the ground floor and a four-bedroom flat above. The dry cleaners had been running at a loss for the previous two years, primarily because the owner had invested heavily into the business.
As a result – and also due to changes in their lending appetite – the client’s current lender decided not to renew his product. He therefore needed a commercial property refinance, at a time when many lenders were withdrawing their commercial finance offerings.
Our solution:
When a client loses their existing lender, many are left feeling worried that they may struggle to secure further finance. In cases like this, a broker can be invaluable. After the client came to us for help, we resolved this by approaching a lender who is heavily invested in the commercial market, and was able to understand what the client was looking to achieve through his investment in the business. The rental yield on the flat above was also good enough to attract the business.
Ultimately, this meant we were able to negotiate for an interest-only mortgage of almost £1.5 million. This was a fantastic result for the client and shows that even if one lender is unwilling to finance an asset, there’s always a solution out there – providing you know where to look.
The case in brief:
- £2.25 million semi-commercial asset
- Commercial property refinance
- Existing lender had withdrawn product
- £1.5 million interest-only mortgage
The current landscape means securing commercial finance is more complex than ever. Read more about our services, or speak to a broker today.
