Key Details:
- Client Type: UK-based commercial property landlord
- Property Value: Circa £5.25M
- Loan Amount: Circa £1.25M
- Loan-to-Value (LTV): Approximately 24%
A UK commercial property landlord sought to refinance a commercial property valued at around £5.25 million. The client needed to replace an existing mortgage and access additional capital to fund the construction of a new warehouse on adjoining land. They also required funding to purchase a nearby site available at a competitive price, with a strict completion window. Speed and flexibility were therefore important considerations.
This transaction was highly time sensitive. The client needed to commence construction quickly and complete the adjacent land purchase within a tight timeframe to secure the agreed purchase terms. Traditional commercial lending processes can involve longer underwriting and documentation periods, creating potential timing challenges. The financing structure also needed to provide flexibility around a future liquidity event expected within three years, when the client intended to repay the facility.
Enness Global arranged a circa £1.25M variable-rate commercial mortgage within 24 hours of the initial enquiry. Terms were agreed on a five-year basis with no early repayment charges, subject to lender criteria, supporting the client’s intended future repayment strategy. Documentation was progressed promptly, and the lender issued an offer subject to valuation within approximately one week.
The refinancing and associated land acquisition completed within approximately six weeks, allowing the client to proceed with the planned construction and acquisition within the required timeframe.
This case demonstrates how specialist commercial finance can support landlords requiring additional flexibility around refinancing, development expenditure and time-sensitive acquisitions. By identifying a lender whose criteria aligned with the client’s requirements, Enness Global was able to structure a solution around both the immediate funding need and the client’s anticipated longer-term repayment strategy.
Disclaimer
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Commercial finance is subject to status, underwriting, valuation, asset suitability and lender criteria. Loan amounts, loan-to-value ratios, pricing, timescales and lending structures are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.
Risk Warning
Commercial property values can fall as well as rise and commercial property may be illiquid. Where borrowing is secured against property, failure to meet repayment obligations may result in repossession of the secured property. Variable-rate borrowing may also result in changes to the cost of servicing the facility.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
