Remortgage of semi-commercial property with no business accounts

We were approached by three brothers looking to remortgage a mixed-use property located in West London – consisting of an Indian restaurant on the ground floor and a four-bed flat above.

The flat has its own separate entrance and there is an agreed tenancy in place with a family of four. One of the brothers is going to run the Indian restaurant along with the existing manager.

The property had originally been purchased with a bridging loan for two reasons:

1. The vendor wanted a quick sale due to illness

2. The residential element of the property was in need of light refurbishment before it could be let

Keen to exit from the bridging loan the brothers now wanted to remortgage onto a commercial rate. 

The main challenges with this case was that the vendor hadn’t provided the clients with the business accounts from the restaurant coupled with the fact that they had not had their own business in the past.

This meant that the clients needed a lender that would accept the deal based solely on their business plan and projections.

Impressed with the clients’ we helped them structure a strong business plan focusing on their experience in working similar restaurants plus attended the meeting with the Bank in order to support the client.

We were able to source finance from a high street bank that didn’t charge an arrangement fee.

The clients accepted the following deal:

Property value: £725,000

Loan amount: £430,000

LTV: 60%

Rate: 3.49% 3 year fixed

Term: 20 years capital and interest

Borrower: Partnership

Lender arrangement fee: Nil

Mortgage payment: £2,490 pcm

Rental income: £2,000 pcm plus business profits

Consultant: Paul Keddy, 01732 471655


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