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
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