Manchester Office

Lending Query

A real estate management firm specializing in commercial properties in Manchester, England, approached Silver Oak Capital seeking assistance in purchasing a new office building in the city center. They required a long-term commercial mortgage at 65% loan to value (LTV).

Client Circumstances

The borrower, a seasoned real estate manager, had a successful history of acquiring and managing commercial properties in Manchester. They focused on office buildings with high potential for rental income and value appreciation. With a track record of successful acquisitions, the borrower provided assurance to potential lenders. They aimed to complete
the purchase swiftly with cash but required immediate access to a loan post-acquisition.

Problems to Solve

Primary challenges in this case included addressing potential issues related to office space occupancy rates and tenant stability, as fluctuations in the commercial real estate market could impact rental income. Additionally, ensuring the building’s compliance with modern office standards and regulations posed a challenge requiring thorough due diligence.

Solution Provided

We presented a customized solution from a reputable regional lender, tailored to address the client’s needs:

  • Loan Amount: £4.5 million GBP
  • Loan to Value: 65%
  • Interest Rate: 3.00% + Bank Base Rate
  • Term: 7 years
  • Repayment Structure: Full Interest Only
  • Bank Fee: 1.00%