An established residential landlord in Birmingham wanted a commercial mortgage to buy his first commercial property which was rented out to a supermarket. His bank had said no as the existing tenant only had two years left on the lease and they wanted a longer lease. He had approached other brokers who had found finance which was double the amount he expected to pay.
The tenant had been in the property thirteen years and had just carried out an expensive fit-out. This gave us comfort that the tenant wanted to stay at the property. As our client wanted to retain the tenant, we suggested that a new lease be created at completion which would help secure finance and keep the tenant.
The £600,000 loan was agreed with a high street bank as the lease was now longer, at a rate which was very competitive.