Client Overview
The client was a UK-based commercial property investor with a diversified portfolio including office and light industrial assets. One of their core properties was approaching the end of an existing lending facility.
The client required a strategic refinance to improve cash flow and support future investment plans.
Do you have a commercial property you are looking to remortgage or purchase? Click here to get in contact with one of our experienced brokers today.
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The Challenge
The property was valued at approximately £7.2 million, with an existing loan balance of £4.8 million.
Key challenges included:
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A high loan to value ratio (for a commercial security)
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The need for a full interest only solution
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Complex rental income structure across multiple tenants with varying lease lengths
The client had previously approached their existing high-street banking partner; however, they were unable to achieve the appropriate leverage or provide a suitable solution.
If you’re considering purchasing or refinancing a commercial property, click here to learn more about our range of tailored commercial funding solutions.
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The Articus Finance Approach
Articus Finance undertook a detailed review of the transaction, including:
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Rental income analysis and lease structures
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Property valuation and lender appetite
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Cash flow modelling under different interest scenarios
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The client’s wider portfolio and long-term strategy
We then approached a handful of specialist commercial lenders and private banks with whom we work closely.
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The Solution
Articus Finance secured:
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The required loan at 67% loan to value
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Interest only solution
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A competitive 3 year fixed rate to align with various lease expirations
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Fast credit decision and completion
The refinance provided the client with stability, flexibility and capital to support continued growth in a challenging commercial property market. We have a library of previous case studies that range from commercial to development to residential mortgages. Click here to read more