The Client

The client was a complex LLP structure with members including Trusts, overseas entities individuals and SIPP's. Our client was looking to refinance a large office block in Kent after their existing lender informed him they were no longer operating in the commercial office block space.

The Challenge

Covid had an impact on lenders attitudes to office space, especially larger buildings. Our client wanted a 60% loan to value to repay the existing lender. With the rise in interest rates in 2023, commercial valuations were negatively effected which meant many lenders didn't want to expose themselves to a commercial loan of near £4m at the loan to value required in the office space market.

The Solution

The merits of this deal were good. We were able to present the historic passing rents and long term leases to a lender who were comfortable with the complex ownership structure. They got comfortable they were lending to professional landlords and it was as much relying on the type of borrower as it was the security. We secured our client £3.6m on a valuation of £6.1m to complete within time to repay their existing High Street Lender. The loan provided the LLP with the terms for another five years, very happy clients.