Client Background:

Our client is a seasoned property investor and wished to expand their semi-commercial property portfolio within London. This investor operated through multiple Limited companies because of developing commercial property in various SPV’s. Each company held one or more different properties. The portfolio included 16 semi-commercial properties, which are properties with both residential and commercial components, often appealing for their dual income streams and potential for diversified investment.

Challenge:

The primary challenge was to secure a significant loan of £11.2 million, which involved combining one loan with one semi-commercial mortgage lender across multiple Ltd companies. The properties varied in size, location, and tenant mix, adding layers of complexity to the valuation and the lenders risk assessment.

Solution:

• Fox Davidson semi-commercial proposition:
  • Our brokerage, specialising in semi-commercial property mortgages, leveraged our 20 plus years of experience and understanding of the semi-commercial mortgage market to put together a solution for this large-scale financing. We assessed each property individually, taking account of the rental income, the term of the tenancy and the type of tenant and class use of the commercial elements.
• Lender Selection:
  • We worked closely with a specialist commercial mortgage lender known for handling complex, high-value portfolios. A lender we had a long standing relationship with.
• Loan Structure:
  • The loan was structured to be secured over all 16 properties, distributed across the different Ltd companies but wrapped into one loan.
• Professional Recommendations:
  • Solicitor: We recommended a solicitor with a proven track record in handling complex property transactions. This solicitor was instrumental in managing the legal aspects, ensuring all corporate and personal guarantees were correctly documented and that the conveyancing process was seamless.
  • Surveyors: We engaged trusted surveyors to perform detailed valuations of each property. Their reports were crucial in providing the lender with confidence in the property values.

Execution:

• Application and Approval: The application process was expedited by our thorough client preparation through efficient fact finding and collation of documents and an understanding of the lender’s requirements.
• Due Diligence: With the surveyors’ reports and legal reviews completed, we managed the due diligence phase efficiently, addressing any concerns raised by the lender regarding the properties.

Outcome:

• Funding Secured: The £11.2 million loan was successfully secured, enabling the client to proceed with their refinance strategy. The client was able to raise funds across the portfolio for further expansion.
• Client Satisfaction: The client was highly satisfied with our bespoke service, the speed of execution, and the expertise provided throughout the process.

Our Thoughts

This was a very complex case that required a complete assessment of the portfolio which took a significant amount of time, however, getting the initial fact find right at the start made the rest of the process much smoother.

To discuss semi-commercial portfolio mortgages in London please contact the team. [email protected]