About the Deal
Our client came to us looking for a semi-commercial remortgage of a mixed-use development, comprising of a restaurant with flats above it. They were seeking a substantial loan with gross debt of £1 million to pay off a current loan and raise capital to buy another property.
We initially worked with the owner to find a lender that was willing to offer the required funds despite the commercial unit being vacant, based on the income of the residential units above (paid in cash but above board) and the value of the commercial unit in its unoccupied state.
Then, just before completion, a tenant was found which strengthened our position and meant we had to regroup.
Sadly, a few weeks later, due to the effects of Covid-19, the tenant revealed that they could not continue and would be pulling out. This meant the deal had to be underwritten on the strength of the residential units’ income only.
The road to completion wasn’t straightforward in this case, but through patience and perseverance the deal was made. The client now has the finance they need to purchase their next property, and we are excited for their new journey.
