Enness was approached to assist with the refinance of a commercial property in Cambridge. The existing lender was changing its lending strategy and moving away from commercial property, meaning the borrower needed to find an alternative provider despite being satisfied with the existing arrangement.
The property was a multi-tenanted commercial asset occupied by a range of established businesses. The strength of the tenant profile provided a positive factor when assessing the property, while the approaching expiry of the existing facility meant the refinancing needed to progress within a defined timeframe.
The property was held through an Isle of Man trust, adding another layer of complexity to the application. The beneficiaries were based in Kenya and remained resident there, which narrowed the pool of lenders able to consider the transaction. Arranging UK commercial property finance for an internationally based borrower can require careful consideration of both the ownership structure and the borrower’s jurisdiction.
OUR SOLUTION
The company responsible for managing the trust introduced the client to Enness, recognising the firm’s experience in arranging finance for international borrowers and more complex ownership structures.
Enness identified a private bank with experience in lending to internationally based clients and presented the circumstances of the application to the lender. The bank was comfortable considering the trust structure and the beneficiaries’ overseas residency, while also working within the timeframe required for the refinance.
A £2.1 million commercial property facility was arranged at a rate of 2.85%. The refinancing provided an alternative to the client’s existing lender and allowed the commercial property finance to be restructured ahead of the expiry of the previous facility.
This case demonstrates the importance of identifying a lender with the right appetite for both the property and the borrower’s wider circumstances. Where an existing lender changes its lending strategy, specialist knowledge of the market can help internationally based borrowers explore alternative financing options.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability, business suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
