A sole director and shareholder of a business that offered car repairs and MOTs came to us. He owned the freehold of the garage which is unencumbered. Over the garage there were 4 leasehold flats each on a separate title to the garage. One of these flats had come up for sale which our client sought to purchase so that he could rent it out. Our job was to find the best finance deal from the whole of the market to assist him with the purchase.

The flat was priced at £115,000; the client had £28,750 in cash so the loan required was £86,250 (75% LTV).

Using a first legal charge over the freehold of the flat£115,000 valued at £115,000, the expected annual rental income of £11,400, the garage profits of £12,000 and the clients’ rental income from the business of £30,000 we were able to secure competitive finance at 4.5% over Bank Base Rate for the 15/20 year term required.