Finance Category: Commercial Property Finance
Fox Davidson specialises in all types of property finance including commercial mortgages for dental surgeries. Our client approached Fox Davidson on the recommendation of a fellow dentist professional whom we had previously worked with.
Our client already had funding in place with a commercial mortgage lender but wanted to explore options for refinancing and switching to a flexible commercial mortgage product that would not tie them in with early repayment charges. They also wanted to explore how much they could borrow as they wanted to inject some funds into the business to grow it.
Commercial mortgages for dentists.
Commercial mortgage lenders recognise Dentists as professionals and as such commercial mortgage lenders are willing to lend up to 100% loan to value and up to 80% of the goodwill valuation. A lender will assess the company’s EBITDA and can also consider management accounts where a business is part way through the year or has not yet finalised accounts.
We explained the options our client had with regards to borrowing all the way up to 100% of the value of the dental practice and 80% of the goodwill value of the business. Our client decided to keep the lending at 85% loan to value against the property. We secured a base rate tracker as our client agreed with our opinion that mortgage rates had topped. The base rate tracker also gave them the option to fix it in the future as the mortgage had no early repayment charges. Having taken the loan through valuation and legal we drew down funds after a few months and the client has been able to invest funds into the business to grow and expand the business.
This is the perfect example of a client that had become frustrated with their current lender who was not very proactive, and our recommendation has seen the clients now switch banking facilities to our recommended mortgage lender and the relationship is going from strength to strength.
To discuss commercial mortgages for dentists please do get in touch.