Case Studies

Commercial Mortgage Case Study 1

The Case
Client wishes to raise funds to build an extension to his guest house. The property is valued at £450,000 with an outstanding mortgage of £340,000 and with a potential value following completion of the extension of £550,000. The client requires the maximum advance available. The business had a net profit of £48,359 in the previous financial year.

Is there a solution?
A mortgage for £467,000, being 85% of the valuation following the building of the extension, with a retention of £93,500 until the work was completed. The loan on a near prime basis at a rate of 3.5% over LIBOR.

Commercial Mortgage Case Study 2

The Case
Client wishes to purchase a residential care home for £440,000 and requires the maximum loan available. Accounts for the business show a net profit in the previous financial year of £51,110.

Is there a solution?
A mortgage of £340,000, being 77% of the business valuation including goodwill or 100% of the bricks and mortar value. Interest payable at 2.25% over base rate.

Commercial Mortgage Case Study 3

The Case
Client, a Solicitor, wishes to purchase an investment property for £5.5m. The property is let out as consulting rooms to a major healthcare company. The client requires the maximum loan available and the best interest rate possible.

Is there a solution?
A mortgage for £4m, being 73% of the purchase price, the maximum available based on the rental income. Interest rate at 1.15% over base rate with an arrangement fee of 0.5% of the loan amount.



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