- Client: UK Nationals and Residents
- Property Value: Circa £3M
- Loan Amount: Circa £2.25M
- Loan-to-Value (LTV): 75%
Our clients were experienced commercial landlords with a strong track record of property ownership and business success. With the existing mortgage approaching expiry, they needed to refinance within a short timeframe to avoid additional costs. At the same time, they wanted to maximise the borrowing available against their circa £3M property and release further capital for future investment.
The refinancing presented several challenges. Although the property was legally owned by the clients personally, it was occupied by a trading company without a formal lease agreement in place. Parts of the building were also let on short-term rolling tenancies, giving the lender less certainty around the property's rental income and tenant retention.
A historic overage clause added another layer of complexity. The beneficiary of the clause needed to be identified, which resulted in delays for the solicitors handling the transaction and created an additional consideration during the refinancing process.
Enness identified a lender willing to take a pragmatic approach to the property's ownership, occupancy and tenancy arrangements. We were able to demonstrate the clients' extensive experience as commercial landlords, alongside evidence of continued demand from prospective tenants. This helped provide the lender with sufficient comfort despite the property's non-standard circumstances.
We successfully secured a circa £2.25M commercial remortgage at 75% LTV, structured on a five-year fixed interest-only basis. The facility provided certainty around the clients' borrowing costs while releasing additional capital that could be used to support their future investment plans.
This case demonstrates the importance of working with a lender that can assess the wider circumstances of a commercial property rather than relying solely on standard ownership and tenancy structures. Enness's experience in commercial property finance, combined with access to a broad network of specialist lenders, enabled us to navigate the legal, tenancy and structural complexities involved.
For commercial landlords seeking to refinance an existing facility, release equity or secure funding against a non-standard property, Enness can structure bespoke solutions around the individual circumstances of the transaction. Speak to a mortgage specialist to explore your options.
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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.
