We were approached by a client in need of a commercial mortgage broker, who could arrange a refinance and equity release from one of his commercial investment properties located in Manchester. The property was let out as a gym and benefited from a 15 year lease from a large UK-based fitness group with a strong covenant. In addition to releasing additional funds we were also instructed to find an improvement on the existing interest rate. This required the expertise of a specialist large loan mortgage advisor London based.
The client required 65% loan to value and the property was valued at £4 million GBP.
Our client searched extensively for a large loan mortgage broker London. He ran a large accounting practice and had purchased the gym as a long term investment. He was able to provide a personal guarantee for the loan whilst the monthly rental payments also benefited from a corporate guarantee via the gym’s parent company. The client was 75 years of age and this presented a challenge as many mainstream banks would not lend to individuals over the age of 70.
We were presented with the problem of the asset itself being let out as a gym. Many lenders do not lend to this asset class as they perceive it to be high risk – as it is assumed during times of economic downturn that gym memberships are the first regular monthly payment people tend to cancel. Silver Oak Capital was able to find a lender to fit this particular client’s unique circumstances and offer him the loan he wanted.
We successfully placed this client with an Indian Bank which had a strong track record of commercial lending in the UK. Our approach to debt advisory has earned us a reputation as one of the best mortgage brokers London has to offer.
Commercial Mortgage Loan £2.6 million GBP
Tracker Rate 3.25% + LIBOR
Term 10 Years
Interest Only
Corporate Guarantee from anchor tenant