The client is a business owner who wanted to buy out her partner's 50% share of the ownership of three unencumbered commercial units in the north of England valued at a total of £500,000.
In addition to owning the remaining 50% share of the premises, the client operates a successful car wash business from one of the units which affords her an income of £19,000 pa.
The remaining two units are let; one to a catering company and the other to a retail business, both longstanding tenants but on short term leases of three years. The rent from the let units generates £21,500 pa which is currently paid to the business partner.
To buy out her partner, the client was looking to raise £200,000 against the units as well as using £40,000 from her own personal resources.
The client had approached a different broker but they couldn't find a lender that would accept the car wash business as security.
We contacted a specialist lender that can only be accessed by a few, select intermediaries (including Mortgages for Business), who was more than happy to provide the necessary finance.
Property value: £500,000
Loan amount: £200,000
Rate: Lender’s LIBOR + 5.25% (Lender’s LIBOR currently 0.51% but subject to a floor of 0.75%)
Term: 10 years interest only
Loan to Value: 40% LTV
Lender arrangement fee: 1.7%
This is just one example of how I've helped a client secure finance. To see more of my case studies please visit my profile page. And if you have any funding requirements, please do not hesitate to contact me. My direct line and email address can be found below.