The Client:
The clients were experienced landlords looking to purchase their first semi commercial property. They had a large amount of outstanding credit in their personal names but a good amount of net worth and equity across their residential and investment properties. Both applicants are self-employed with a clean credit history.
The Scenario:
The property consisted of two commercial units on the ground floor and a large flat above producing a yield of 11.5%. They also owned several leasehold flats in the same area which are above a separate commercial unit, however the freehold to these flats was under the commercial title. The client had negotiated the purchase of this commercial unit so that they could obtain the freehold, however as the commercial unit was vacant and very small capital value, sourcing a lender to provide borrowing on the unit would not be an option on its own.
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The Solution:
After already sourcing a commercial lender for the semi-commercial purchase, we were able to get the lender to add the individual commercial unit onto the same mortgage to allow the client to purchase both properties under one loan. This not only secured the client two new commercial investment properties, but also the freehold of the existing residential investment properties. A 75% LTV mortgage was secured on an interest only basis over 25 Years.
Summary:
The commercial investment market has grown in popularity in recent years, however there are a lot of complexities involved with the mortgage process, and most lenders will only lend via Commercial Mortgage Brokers. If you are in the market for a commercial property, or are looking at remortgaging an existing property, speak with our experienced brokers today who can offer years of Commercial lending experience to help you on your investment journey.
Get in touch today with our dedicated team of Specialist Commercial Mortgage Advisers for all your mortgage needs. Get in touch via phone on 03303 112 646 to speak directly to an Adviser. Alternatively, you can also fill in this short online form to get started and a member of our Specialist Mortgage Team will get back to you straight away.