Featured, Mortgage Guide
The client: An experienced property developer and longstanding client, whom we have completed funding for on numerous commercial and residential properties. They are a non-UK national and non-UK resident, using a UK SPV.
The property: Originally the property was a three storey commercial building in East London, comprised of a ground floor coffee shop and retail outlet with two floors of offices above. The property was in a prime high street location in E11 and planning was gained for the conversion of the commercial office space during the term of the existing commercial loan. However, this lender was unable to fund the redevelopment during the pandemic, so an alternative funder was required during lockdown.
The finance: The original commercial and development loans were placed by us and this final term facility was required to repay the development facility put in place by us and release capital for further development projects.
This also enabled the client to retain all nine flats and two commercial properties within their wider portfolio at a fixed rate for 5 years.
The challenge: The client was a non UK based borrower and non-UK national, which posed some additional obstacles. There was an expiring commercial lease on the coffee shop and one commercial unit and it was a high value large semi-commercial property, comprising 9 residential flats and two commercial units. All the elements were held under a single freehold title, with a requirement for the aggregate value of each component part of the building to be used rather than the block investment value, which was considerably lower.
The solution: We aggregate value of all 9 residential flats and two commercial units used to maximise the borrowing and agreed to lend at 75% loan to value of the higher figure with commentary from the existing tenant in respect of taking a new lease and proposed tenant for the empty commercial unit accepted by the bank.
Broker: Peter Davies – peter.davies@coreco.co.uk
At Coreco Commercial we’re experts at sourcing the most suitable solution for your needs, be it a bridging loan, development finance, or even offshore mortgages if you’re looking to purchase property aboard. Talk to us today or call 0207 220 5100.
Starting his career in property and finance with Connells Estate Agents more years ago than he cares to remember, Peter was first employed as a sales negotiator before moving across into the Financial Services arm as a mortgage adviser. During this time he studied for, and passed, all three elements that make up the FPC qualification and in addition gained the CeMAP qualification. After 5 years with Connells he joined John Charcol in 2002. Based in the Canary Wharf office he remained with Charcol until joining Coreco in August 2009 shortly after the business was established. Better known as Taff, he now works within the Specialist team here at Coreco Towers dealing with the extremely varied requirements of their many clients.
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