This year we’re going to be updating you more often and in greater detail on what we’re up to at Kind Commercial, and today we’re kicking off a series of Case Studies examining exactly how we work to deliver success for our clients.
In today’s Case Study, we’re looking at a Commercial Mortgage piece which Dean Pedley recently managed. Find out more below, and make sure you’re following us to see all the future instalments in the series.
Case Study 01 – Commercial Mortgage
A client approached us to secure a Commercial Mortgage on a factory unit that they had previously been renting. The transaction was of an urgent nature, as the freeholder needed to quickly complete the sale for health reasons and gave our client first option to purchase – subject to confirmation of funding within two weeks and completion within eight weeks.
Working to the brief we completed our executive summary and fact find within 48 hours and worked with the client’s accountants to ensure we could present potential lenders with a robust set of financial information, including stressed cashflow forecasts to evidence the client’s capability to service the debt. We approached several lenders and were able to offer our client three options with different levels of LTV’s and interest rates, allowing them to make an informed choice. Our client opted for a 70% advance of £400K at 3.0% over bank base rate with a 1.5% lender’s fee.
By drawing on our strong relationship with the lender we managed the deal through to a timely completion by ensuring that the professional advisors who completed the valuation report and the legal due diligence were aware of the urgency of the transaction. The client was therefore able to complete the purchase ahead of schedule.