Deal of the Month: Commercial Mortgage Funding for Charity Headquarters

A hand holding grass in the middle of a green field during daytime

Working with charities can provide particular difficulties, but this deal was more challenging than most. Other lenders had been approached, but were unable to overcome concerns.

Lending to a charity was the first worry. Many banks are not keen on granting funding for charitable organisations as the lender’s reputation can be ruined if it ever has to take possession of a property from a charity.

Secondly, because the deal was for a farm, it was difficult to secure finance. Many lenders are not keen on property with an agricultural use, and this one was in a particularly poor state. To add to this, due to time restraints, they had done their own valuation instead of enlisting the services of a qualified RIC surveyor.

These challenges were multiplied by the fact that the client was under increasing pressure from the vendor to complete, or they faced losing the property.

Our wide range of contacts led us to approach Devon & Cornwall Securities, because of their flexible underwriting and commercially-minded criteria which we knew would match the demands.

Following a site visit and survey, the deal was completed quickly – despite a hiccup involving the client’s bank holding the client’s deposit money for two weeks for no known reason which almost led to the collapse of the whole process.

However, patience won the day. The issue was eventually resolved to everyone¹s satisfaction and the farm is now being used as the charity’s headquarters.


commercial mortgage
Read more:
UK Commercial Lending is up by 19%
The Pure Commercial Finance Guide to Buy-to-Let Investment
The Main Risks of Property Investment

Article By Ben Lloyd

September 30th, 2016

Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.

Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.

Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.

Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.

See more articles by Ben

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