One problem that many commercial investors face is securing commercial finance for properties that are outside of London and the South of England. Often, lenders are the happiest lending in these areas because the property market is stronger, and they have more understanding of the locality.
As such, some niche and lesser-known clients are often a good match for clients seeking commercial property finance in less popular areas. I was recently approached by a property investor looking to purchase two distribution centres in the North of England. With a value of £1.15million, my client required a £650,000 facility to purchase the units.
As mentioned, the location was a problem. The commercial units were also being purchased through an unusual structure (a Public Liability Company), which created an additional complication. Finally, only one of the units had a tenant. This tenant was an excellent one, but lenders can be very cautious about lending against commercial units which are untenanted because they understandably will look to see a tenancy agreement as proof that the loan can be repaid.
I approached a little-known private bank who specialise in providing loans to business. This lender is one of the cheapest currently operating in the market for this sort of lending and was happy to work with my client in this instance.
I was able to secure a £650,000 facility on a 5-year fixed rate of 4.35%. This was an excellent rate for a commercial purchase of this nature. This facility also offered my client to make overpayments of 10% per annum, should he wish to—in addition to only having Early Repayment Charges (ERCs) for the first two years of the loan.
If you are looking for commercial property finance, Enness Commercial has solved even the most complicated and time-sensitive cases, and our market access will make your financial requirements a reality.
So, if you’re looking to arrange commercial finance quickly, or wish to be advised on the right structure and options for your acquisition or project, we will work with you to achieve the best return on investment and lending terms for you.
France is one of the most popular property markets for foreign nationals: we are all aware of the chic appeal of Paris, the enduring allure of the Riviera in the summer or the freshness of the mountains in winter.
Covering everything from search and negotiation to making an offer and the legal processes, the guide will help you fulfil your dream of property ownership in France.