Loan Amount:
£500,000
Property Value:
£759,000
LTV:
65%
Many commercial landlords want to simply rent out a space to a corporate tenant, without getting involved in the underlying company itself. But, there are those who want to help support the business at hand.
Such a landlord recently turned to us for support. They required funding to purchase some commercial properties with businesses in place that they planned on being involved with.
But, an external issue risked slowing down the deal. Our underwriter got to work and made sure everything was accounted for.
Experience put to use
To ensure that the borrower could actually support their tenant’s efforts, we looked into their background. We saw that that the borrower had plenty of experience in the industry, meaning they could put their expertise to use.
However, an agreement was put in place externally which added a layer of potential risk to our loan. To mitigate this, we obtained documentation which broke down the details so we knew where we stood from a lending perspective. We also put additional plans in place before funds were issued to add additional security to the deal.
With the borrower’s track record of success, and their clearly evidenced exit strategy, we felt confident in delivering the acquisition finance needed.
Supporting a commercial recovery
Commercial properties, and the businesses within them, have faced a challenging few years. But the market is showing signs of a recovery. Investors in this corner of the market may soon see their fortunes improve.
Commercial investments are still complicated though, often more so than their residential counterparts. Property investors will likely struggle to progress in this market, even with the outlook improving.
We are not afraid of a challenge however. We focus on the long-term outlook of an industry or market here at Market Financial Solutions, and find ways through the difficulties in the interim. If our borrowers want to embrace optimism, we’ll help them do so.
Further reading:
- Featured Product: Commercial & Semi-Commercial Bridging Loans
- Explainer Video: Commercial Bridging Loans
- Tool: Bridging Loan Calculator
- Report: The post-pandemic outlook of the UK commercial property market
- Blog: Commercial property tax guide – what taxes do investors need to pay and what are the allowances?
- Blog: How to invest in commercial property?
