| Property | Vacant ground-floor shop with a let two-bedroom flat above |
|---|---|
| Location | Margate, Kent |
| Client | Local landlord planning to re-let the shop |
| Product | Semi-commercial mortgages |
The challenge
The shop was empty, and many lenders will not lend on a vacant commercial unit, or reduce the loan heavily. The flat was let, but its rent alone did not cover the loan.
What we did
We found a lender willing to assess the property with the shop vacant, at a lower LTV. We supported the application with a letting agent's view on achievable shop rent and local demand. The client's other rental income helped show the loan was affordable during any void.
The outcome
The purchase completed, and the client has since found a tenant for the shop.
Semi-commercial mortgagesMortgages for mixed-use buildings, such as a shop or office with flats above.
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.