There is no denying that the commercial lending sector is experiencing some challenges due to global events; however, we are still successfully securing loans for a wide variety of clients who are able to demonstrate that their proposition presents a viable opportunity.
In one of our most recent cases, our client owned a property with a commercial unit on the ground floor and two flats above. The client held an ambition to extend the property upwards, creating a further two flats on the upper floors, and required a mortgage to refinance their current loan, repay a personal loan and pay for the works on the project.
There were several challenges outside of the obvious issues being faced in the wider market. Firstly, the flats would be classed as new build properties which are historically more difficult to finance. Secondly, there were surrounding commercial properties which could affect the final value of the new build flats.
Our Associate Director Paul Fredericks was able to prove to the lender that the current building was providing a viable return by demonstrating continued rental income, despite the challenging market. This evidence meant the lender was happy to continue with the application, and our client’s development will be going full steam ahead.
If you are facing a challenge with your lending, don’t hesitate to get in touch with our team of expert advisors.