Key arrange 96% funding on retail unit purchase

We were delighted to use our extensive knowledge of the commercial funding sector to help a successful businesswoman purchase her retail premises, with a 96% LTV.

Our client runs a high quality bridal wear shop in Holmfirth, Yorkshire and when the opportunity arose to purchase the upper floors from the landlord, the client also decided to purchase the ground floor retail unit as well, in a drive to grow and expand the business.

However, the deal was unusual in that the ground and upper floors were being rented from two different landlords.

With Key having excellent working relationships with many lenders, we were able to approach several that, in our experience, would be able to assist in this unusual case.

After discussing the transaction in detail with several lender partners, we recommended that the client proceed with Yorkshire Bank.

Andy Simpson, Business Development Manager at Yorkshire Bank, helped to structure a deal that allowed the client to purchase the whole building with a commercial mortgage of £122,000 on an LTV of 70%. In addition, Yorkshire Bank also provided a short term loan of £46,000 to repay some external debt and reduce the clients overall monthly outgoings, bringing the overall lending to 96% LTV.

David Menaghan, Commercial Finance Consultant at Key, said: “This was a complex case for which we were able to find a very favourable outcome for the client. Working across two rental properties with two landlords to make a purchase of the whole building meant we had to use our extensive lending panel and expertise to assist the client in order to find suitable funding, but we were also delighted to achieve an LTV of 96% on the overall transaction, much to the delight of the client.

“This case highlights the benefits of using an experienced commercial broker when looking to finance business property, particularly when the case is outside the usual criteria of many lenders.”

Andrew Simpson of Yorkshire Bank, said: “At Yorkshire Bank, we are committed to working with business owners to provide tailored funding solutions that meet their requirements.

“With considerable experience in the retail sector, Shannon Martin set up Dotty Taylor Bridal in 2014 and her business continues to go from strength to strength. We are pleased that we were able to offer our support as she embarks on this next phase of her business journey.