Our clients were a father and his two sons who had operated their vehicle repair centre for many years. They currently traded from rented premises, however 2 units adjacent to their current location had now become available for sale and they were therefore seeking finance to make the purchase. The purchase price was £160,000 + VAT (£80,000 per unit). The clients had a deposit of £80,000 so our task was to find £80,000 (50%LTV) over the desired term of 15-20 years.
Using a first legal charge on the freehold of the units being purchased valued at £80,000 each and a strong set of business accounts for the year ending April 2014 which generated more than sufficient to service the commercial mortgage.
This, the facts that our clients deposit was being provided from savings without the need to revert to further borrowing, the father and both sons had surplus savings and a home worth £350,000 virtually unencumbered all enabled us to secure finance at Bank Base + 3.11% over the term requested.