Client circumstances:
Our client was a high-net worth portfolio landlord who had recently restructured their investment business, reorganising their property holdings. MT Finance had provided the bridging finance to facilitate that restructure. With the restructuring complete, they needed a term loan to transition from short-term bridging finance onto a stable long-term commercial mortgage.
The security was a substantial commercial property in a high-value London location held under a single landlord structure. The asset is notably diverse in its use, incorporating a restaurant, a cash and carry, a light industrial warehouse, a car park, and three residential flats above. All elements of the property are operated by the same tenant, giving the landlord a consolidated and streamlined management arrangement.
MT Finance solution:
The property was assessed on a vacant possession basis and valued at the lower market rate in line with MT Finance’s lending criteria. Despite the conservative valuation basis, the ICR came in well above the required threshold reflecting the quality and resilience of the asset as an income-generating investment. With no additional capital raise required, the commercial term loan was arranged as a pound-for-pound refinance to repay the bridging facility in full.
To save time and cost, we arranged a valuation retype and provided a £2,850,000 commercial loan, at 75% LTV on an interest-only basis, secured by a first legal charge over the property. The loan was set over a 10-year term, with the rate fixed for the first five years to provide cost certainty across the initial period.
The benefits:
MT Finance supported the borrower across both phases; bridging the restructure and then providing the long-term commercial mortgage, delivering a bespoke solution from start to finish.
The case was facilitated through established broker relationship, and the existing familiarity with the borrower’s profile including their history with MT Finance from the bridging phase meant the team could move efficiently and with confidence. The multi-use nature of the security required a lender able to look beyond standard asset categories. We assessed the property on its fundamentals which reflects a clear example of the flexibility and common-sense approach that defines MT Finance’s offering.
Find out more:
Is your client in need of a commercial mortgage? Our recently launched owner occupier finance is available for business owners looking to refinance or purchase the premises they own or trade from. We also provide loans to finance an acquisition, refinance existing debt, or unlock capital from commercial property. Find out more about our commercial mortgages product range, designed to meet diverse financing needs.
