Location: Surrey

Loan Amount: £600,000

Finance Category: Commercial Property Finance

The Story

Fox Davidson were instructed to advise on and arrange funding for a commercial investment property in Surrey. The retail unit was worth £1.2m and was owned without any debt by a UK SPV LTD company. The company wished to raise £600,000 against the asset in order to purchase further property.

The Challenge

The client had been offered terms at just over 4% above Bank of England base rate and wondered of there was more competitive funding in the marketplace. The loan was only 50% loan to value, the tenant was of a good quality and the lease was just shy of 15 years, so the only challenge with this case was finding a lender that could offer our client the very best terms across rate, fees and also offer flexibility for making overpayments.

The Solution

Fox Davidson works with commercial lenders including high street banks, challenger banks, private banks and broker-only commercial mortgage lenders. Using our established network of lenders, we can often better the commercial mortgage terms a client has found themselves.

We spoke to a high street bank that not many people would think to approach. They were able to offer our client a rate of 2.64% above base rate with a fixed arrangement fee (rather than a % of the loan amount).

The commercial mortgage on the Surrey property that Fox Davidson secured saved the client thousands in interest and fees. Furthermore, we handled all of the paperwork and managed the process through to completion in just 6 weeks, which is very fast for a commercial mortgage.

For more information on commercial mortgages or to speak to us about general mortgage advice, please contact a member of the Fox Davidson team today, email enquiry@foxdavidson.co.uk or call us on 0117 989 7950.