| Property | Modern warehouse unit let to a logistics company |
|---|---|
| Location | Basildon, Essex |
| Client | Property investor buying through a limited company |
| Product | Commercial mortgages |
The challenge
The tenant had five years left on its lease, and lenders look closely at lease length and tenant strength. The investor wanted a long-term loan that would not depend on the tenant renewing.
What we did
We provided the lease, the tenant's published accounts and the rent review history. We approached lenders that are comfortable with single-let industrial units and assess debt cover on the rent. A 60% LTV gave the lender comfort over the lease length and kept the debt cover strong.
The outcome
The company completed on the unit with a term loan that runs beyond the current lease.
Commercial mortgagesFinance to buy or refinance offices, shops, warehouses and other business or investment premises.
Learn moreImportant: Commercial mortgages and most business finance are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments on loans secured against it.