case studies

commercial purchase & conversion under PD, P016

Clients circumstances:

The clients were looking to expand their beauty business and required funds to complete the purchase of a commercial property, consisting of a beauty salon and redundant offices. They intended to convert the offices above the salon into residential flats, under permitted development.

Initially the client had another lender in place but were let down as the security didn’t end up meeting their criteria and the transaction was now at risk of falling through. The client’s broker approached MT Finance to see if we could step in and complete as soon as possible.

MT Finance solution:

The clients also wanted to use the equity in their existing semi-commercial property as leverage. So, we instructed the surveyor to immediately begin the valuation process of both properties.

In just under 4 weeks, we completed a £590,000 cross-charge bridging loan at 65% LTV of the cumulative £910,000 open market value. Interest was retained at 0.89% over a 12-month term, there were no exit fees or early repayment charges.

The benefits:

The clients were able to complete the transaction of their new business premises, allowing them to expand their beauty empire. What’s more, the 12-month term will give them plenty of time to convert the top floor into residential flats and secure a mortgage against the improved property value and rental income. If they choose to refinance out of their bridging loan before the 12 months, they won’t be penalised for doing so.




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