Commercial Finance Brokers (UK) (CFBUK) was approached by clients who owned a number of residential investment properties and commercial/farming assets within a couple of family trusts.

The client’s main residence was the hereditary home and the trust owned two other properties rented via standard AST’s and our client was seeking to raise funds against these properties.

The funds raised were to be used to refurbish another investment property and to purchase a biomass boiler to provide heating for a number of the properties. The biomass boiler would have a positive effect on cash flow as energy would be sold to the national grid. The income from the boiler was projected at several hundred thousand pounds, after repayment of the loan and current savings on power of circa £32,000 per annum.

The loan required was £350,000

CFBUK was able to combine a first legal charge on property valued at £1.3m, a personal guarantee with rental income of £31,200 and Trust turnover of £196,166 pa to secure full funding at a competitive rate of bank base rate plus 3.75% over a 20 year term.