Auction Purchase – Commercial Vehicle Repair Yard (September 2009)
Applicants were renting yard premises and existing site came up for sale at Auction. Purchase price £1.45m and existing bankers gave them assurances that 60% funding would not be an issue and that auction deadline could be met.
Having successfully bid for the site, it became clear to the clients that own bankers could not in fact move quickly enough and so they approached us for assistance.
We managed to get an alternative High Street Bank to move quickly and arranged for a local manager to meet with clients and instruct valuation within a matter of days. Despite various obstacles, the bank was able to complete on the purchase on the agreed date on the following terms:
Loan amount - £920,000 (63% LTV)
Interest Rate - 2.75% over Base Rate
Lender Fee - 2%
Repayment Term - 15 years.
