Restaurant remortgage to support new business venture
The client: Self-employed directors with diverse business interests. With experience in BTL and commercial letting, the couple were looking to remortgage an existing commercial property to provide finance for a new business venture. After being turned down by two high street banks they turned to Mortgages for Business for a helping hand.
The property: A two storey Indian restaurant located in a small high street in Warrington. The couple purchased the property 10 years ago as an investment opportunity while the area was undergoing significant development. The restaurant is popular with the locals and the couple have seen a great return from their investment.
The finance: The couple needed to borrow 55% LTV to put towards their new investment and they requested a 10-year repayment term. They had an arrangement in place with their existing tenants to sell the property to them in 10 years’ time and planned to retire around the same time.
The application process: We met with the clients to put their minds at ease after being declined by two lenders themselves. We explained the broker process carefully and what options they have available to them. After the pair provided us with bank statements, proof of address and ID we were able to chase lenders giving them the time to focus on their business and spend time abroad.
We needed to find a lender to accept:
- Commercial Investment Properties
- Equity release for other business purposes
We approached an intermediary only lender whose products may have been more expensive, but their overall assessment ultimately allowed the clients to refinance for fund their new business venture.
After assessing the couple’s business plan and their rental property the chosen lender was happy to lend the full amount required.
Here are the details of the offer: