100% Mortgages for Dental Surgeries

The Story

Fox Davidson secures commercial mortgages for dental practice and can secure up to 100% loan to value or up to 80% of the goodwill value of the business.  In this case study we look at a commercial mortgage we secured for a dental practice in Southwark, London. 

The Challenge

Our client had been trading for 5 years and wished to move their dental practice to larger premises. The purchased property would need a complete refurbishment and would be purchased before their current dental surgery is put on the market. Our client contacted Fox Davidson to discuss the options for funding a 100% loan-to-value mortgage for their new dental practice in London. 

Our clients were also concerned about how commercial mortgage lenders would treat their income as they took minimal dividends out of the company due to other income sources and were concerned that lenders would not view that favourably. 

The Solution

Working with Fox Davidson.

Fox Davidson works with lenders across the whole of the UK commercial mortgage market. Our lenders include high street, challenger, and private banks as well as a handful of privately funded specialist commercial lenders. We are well-versed in securing commercial mortgages for professionals including dental clinics. 

Negotiating terms for the dental client

We took the time to listen to our client’s situation and to understand their mortgage needs. Collating their business bank statements, business accounts, assets and liabilities and built a comprehensive case for lending which we would then go on to present to commercial mortgage lenders. Completing a thorough fact find and understanding of our client’s needs ensures that when we negotiate terms with lenders we produce a solution that fits the clients’ mortgage needs.

Outcome.

Due to our client requiring the purchase and refurbishment of the new dental practice to take place before the sale of the current practice, we required a 100% loan to value commercial mortgage that had no early repayment charges thus allowing our client to pay down the loan on the sale of their current trading premises. 

Fox Davidson secured a 100% commercial mortgage at 100% of the purchase price of the new property. The loan was secured on 5 years fixed rate which had no early repayment charges. The lender worked from the EBITDA of the last 3 years’ accounts and also factored in the external income the clients had from property investment which meant that they did not rely on the dental practice for dividends, this helped strengthen the case for lending.

Fox Davidson specialises in commercial mortgages for professionals such as dentists and doctor surgeries. To discuss commercial mortgages with a broker please do get in touch.