Background
Our client, a commercial property investor, has owned a well-performing nursery asset for several years. The property is held freehold and occupied by a long-established childcare provider on a secure lease, offering reliable income with minimal management requirements.
The Challenge
Our client wanted to release equity from the asset to repay another loan secured against a separate property, currently held with another lender. The challenge lay in structuring a refinance that met the following objectives:
Secure the most competitive terms on the existing nursery debt, aligned with its low-risk profile.
Release capital for debt consolidation elsewhere in the client’s portfolio.
The Approach
With deep knowledge sector of the commercial investment market we appraoched a handful of lending partners, which allowed our adviser to deliver the most competitive, best structured terms in the market for an asset of this nature.
The Solution
Loan: £1,100,000
Leverage: 63% LTV
Pricing: 5 year Fixed rate at 5.9%
Interest Structure: Interest Only
Delivering Value
Our client was offered a rate of 7.5% direct with their existing lender. By utilising P10 Financial Group they were able to save over £85,000 in interest over the 5 year period of the facility.
This deal highlights how using the correct advisers for your commercial lending requirements can be the difference of huge financial sums. Given our expertise in the market we deliver savings like this for our clients on regular occasions. If you are borrowing large sums of money, recommend to get take advice from advisers that truly understand the market.
