We were approached by two very experienced children’s day nursery managers looking for finance to purchase a former local authority day care centre so that they start their own nursery.
This case was challenging to place because it was a start-up business, so there were no accounts to support the application or income to service the mortgage until the nursery was operational.
We approached a high street lender and after considerable negotiation terms were agreed because the clients:
• Had chosen a property that was in good repair and a suitable location.
• Were seeking a relatively low loan to value
• Could demonstrate extensive experience and had a strong business plan with a realistic, yet healthy proposed turnover and net profit
• Had obtained the necessary registration from the local authority to operate as a 38
With the proposals deemed risk-worthy the clients accepted the following competitive terms:
Property value: £260,000
Loan amount: £117,500
LTV: 45%
Rate: 3.00% term tracker
Term: 15 years
Lender arrangement fee: 1.5% (£1,763)
Mortgage payment: £811 pcm capital and interest repayment
Consultant: Andy Elley
Consultant tel: 01732 471644
