Loan Amount: Newquay, Cornwall
Finance Category: Commercial Property Finance
A new client was recommended to Fox Davidson by a professional introducer.
The clients had found a retail unit in Cornwall which contained multiple retail units and private accommodation above.
There were several challenges with this lending case.
The first being that our clients had no commercial property letting experience.
Secondly, the retail units had short leases and finally, our clients required an interest-only commercial mortgage on the Cornwall property.
High street commercial lenders offer the best rates of interest, but they are also very conservative in how much they will lend and insist on the loan being repaid on a capital and interest basis.
They also look for lots of commercial investment experience.
When dealing with short tenancy leases (sub 10 years) and little experience we need to turn to challenger banks.
Challenger banks fill a large lending gap left by the high street banks.
A challenger bank will lend on an interest-only basis, they are open to lending against short tenancy leases and are generally able to be more flexible in their lending assessment.
We put together a comprehensive lending proposal and highlighted the clients’ excellent net asset potion and net income position.
A loan was agreed at 65% loan to value on an interest-only basis for a 5-year fixed-rate term.
Fox Davidson are an award-winning commercial mortgage broker with offices across the South West.
We specialise in commercial mortgages for property in the South West and secure funding on all types of commercial property.
If you wish to finance a commercial property as an investment or as your business premises, please do get in touch.
Contact the team by email email@example.com or call us on 0117 989 7950.