Commercial Midterm Mortgagecase study
Client was looking to purchase a well-established B&B for £345,000, however in recent years the business profits had been declining slowly due to the owners looking to retire. This meant the accounts for the business didn’t show enough profit for the B&B to demonstrate that the B&B would be self-sustaining.
Our client, a very experienced landlord and business owner, knew with some simple changes they could transform the business over the next 6 – 12 months into a very profitable business, therefore providing the accounts in 1 – 2 years to show a very healthy profit. We were able to provide the option for a mid-term commercial mortgage for £214,500.
Enabled our the client to purchase the property with a financial repayment term tailored to their short-term plans. Once the re-vamped business and healthy accounts are available, we will be able to assist further by refinancing the property to a prime lender, with the option to obtain a longer term at prime rates.