At Fox Davidson, we pride ourselves on our expertise in securing complex semi-commercial mortgages. In this case study, we showcase our ability to navigate the intricacies of financing a unique property—a doctor’s practice with 6 flats located above—in the vibrant city of Exeter. Through our tailored solutions and extensive market knowledge, we enabled our clients to acquire the property and unlock its investment potential.

Location: Exeter

Loan Amount:

Finance Category: Commercial Property Finance

The Story

Our clients approached Fox Davidson seeking financing for their trading businesses strategic investment—a commercial unit which would be used as a doctor’s practice along with 6 residential flats situated above it. With a purchase price of £2.3 million, the clients aimed to secure a semi-commercial mortgage with a loan-to-value (LTV) ratio of 75%.

The Challenge

The acquisition of a property combining commercial and residential elements posed unique challenges that required our expertise to overcome:

Specialised financing requirements: Securing a semi-commercial mortgage at a 75% LTV was essential for the feasibility of the purchase and optimising the clients’ equity input.

Lender selection: Identifying lenders experienced in financing semi-commercial properties and willing to finance a doctor’s practice with residential units demanded extensive market research and leaning on existing lender relationships.

Accurate property valuation: The clients needed the valuation to stack up due to the high loan to value.

The Solution

Comprehensive financial analysis: Our team conducted a meticulous assessment of our clients’ financial situation, considering both their personal circumstances and their business viability. This analysis formed the basis for structuring a mortgage solution aligned with their objectives.

Extensive lender network: Leveraging our vast network of lenders specialising in semi-commercial mortgages, we identified those with expertise in financing properties with a mixed commercial and residential usage. As the doctors practice would be used by the client’s expanding business, we needed a lender that would assess their business accounts but also use the income from the residential units above. Our knowledge of lenders’ criteria and preferences allowed us to select the most suitable lender for the loan.

Tailored mortgage solution: Working closely with our client, we put together a customised mortgage solution that met their specific financial objectives. Our solution aimed to secure a 75% LTV, balancing the clients’ financial capacity and the property’s value.

Expert negotiation and application process: Acting as a liaison between our clients and the chosen lender, we presented the property details, financial information, and business plans. Fox Davidson secured favourable mortgage terms, including competitive interest rates, a sufficient, affordable loan duration, and included flexible repayment options with an interest only period for the first 24 months.

Results and Success

Through our unwavering dedication and strategic approach, we achieved outstanding results for our client’s business by securing a semi-commercial mortgage for their doctor’s practice along with 6 flats above in Exeter. The key outcomes of our collaboration included:

Successful financing acquisition: We identified a lender who recognised the unique investment potential of the property and provided a semi-commercial mortgage at the desired 75% LTV, aligning with our clients’ financial objectives.

Competitive and tailored terms: Our negotiation skills allowed us to secure mortgage terms that included competitive interest rates, an interest only facility and a banking facility for the client.

Fox Davidson specialise in semi-commercial mortgages for investors and business owners. We can utilise income from trading businesses and potential rent on mixed use property.

To discuss semi-commercial mortgages for your property investment please do get in touch. Fox Davidson work with lenders across the market including high street banks, specialist commercial lenders and include broker only lenders.