Kuflink helps a client successfully buy the commercial property he had been renting for over 20 years
The Challenge
Our client is an established businessman who has leased his ground floor clothing shop for over 20 years. He now wishes to buy the two-story freehold commercial property from which he trades in Birmingham from his landlord for £360,000.
On the second-floor there is a beauty salon who have spent a substantial amount of money renovating the salon but don’t have a lease. This couldn’t be put in place before the sale was completed as this would have alerted the tenant to the sale of the property and at that time our client didn’t own the property.
Speed was of the essence as the property hadn’t gone on the market and the vendor wanted to ensure the sale went through quickly. A further complication was that the sale was subject to Probate.
However, the client had already started to put in place long-term finance but needed to complete quickly to meet the vendor’s timescales.
The Solution
By working closely with the client and the broker we were able to overcome the numerous challenges and took a 1st Charge over the commercial property. Once the deal completed the client is arranging a lease with his tenant on the first floor and will be finalising his long-term finance to repay our loan.
Deal Breakdown:
Funds required: £252,000
Loan duration: Six months
LTV: 70%
Security: Two-storey retail shop
Charge: 1st Charge
Open Market Value: £360,000
Why our client chose Kuflink
This deal came from a new broker that we met at a recent corporate event. The broker was confident that Kuflink was flexible given the complicated nature of the deal and could meet the timescales required.
