Broker: Jaff Sadi
Overview: This deal involved the purchase of a semi-commercial freehold property, consisting of a post office and convenience store located in Oldland Common. The property also includes a Buy-to-Let (BTL) annex at the rear and a flat upstairs, which is occupied by the client’s young family. The property was split into two titles – one for the commercial unit and annex, and another for the upstairs flat.
Risks and Opportunities:
- Client wanted to complete the purchase hassle-free with their existing high-street bank. However, the bank was playing hard ball with the financing due to some MCOB concern.
- Tight deadline as their existing bank wasted four months. The vendor issued 6 weeks ultimatum to complete the transaction.
- Possible duplicating costs e.g. valuation, legal costs etc.
- The risks of losing the business & home.
- To mitigate the concern of MCOB issues.
Solutions and Impact:
- Jaff assessed the situation carefully and approached a lender who would take a coherent view on the deal especially with regards to the short deadline & the MCOB issue.
- Jaff collaborated with the client, their legal team & with the lender to overcome all challenges in order to achieve a positive outcome for his client.
- This financing enabled the young business owner to continue trading from the same premises and secure their financial future.
- This also provided them a sense of stability as a family.
Highlights:
- £510,000 Purchase
- 75% LTV Mortgage
- Repayment facility over 20 years
- Circa £115,000 EBITDA