LTD Company Commercial Purchase, DA1
Clients were leasehold owners of a commercial unit, where they had operated their private security company from for a number of years and when the freehold came up for sale, the company were keen to purchase it. The clients had been let down by another lender who were unable to proceed, and needed to move quickly before the Option Agreement expired.
MT Finance solution
Faced with roughly 2 weeks to deliver the funds, we immediately instructed our solicitors and were also able to utilise a retype of the existing valuation report to complete on the transaction, supported with an audit from one of our panel surveyors.
Halfway through the loan process, the Government’s social distancing measures came in to place and as the clients were in self-isolation, we worked with their broker- who delivered all the ID documents to our solicitor for certification. In just 13 days, MT Finance was able to secure £325,000 loan on the commercial property, at 65% LTV, based on the current value. Interest was serviced at 0.89% over 23 months, with no exit fee or early repayment charges. No personal guarantees were required.
The clients were able to purchase the freehold of their unit, giving them long-term security for their business and the 23-month term will gave them enough time to source refinance with a commercial mortgage lender, enabling them to redeem our short-term loan.