Couple raise capital on restaurant for further commercial investment

We were approached by a married couple, both doctors, who own a fairly modest portfolio made up of semi-commercial properties. 

The couple wished to refinance a retail unit located in London, which they purchased in a derelict state, refurbished and currently let as a restaurant. The clients wanted to raise capital for further commercial investment.

The clients were keen to purchase a similar property to refurbish but were not happy with the idea of bridging finance because it can be an expensive route.

We were able to source a specialist lender which offered the clients the following deal to ensure the funds were available as and when an appropriate property was found.

The details of the deal are below

Property value: £470,000

Loan amount: £172,500

LTV: 37%

Rate: Bank Rate + 3.65%

Term: 25 years capital and interest repayment

Lender facility fee: 1.75% (£3,019)

Mortgage payment: £917 pcm

Rental income: £2,917 pcm

Gross yield: 7.45%

Consultant: Steve Bedford 

Consultant