To facilitate the purchase, the client was also setting up a new limited company, otherwise known as a Special Purpose Vehicle (SPV). An SPV is a limited company created solely to hold and manage a particular asset or property, keeping it legally and financially separate from the individual or main trading business. This type of corporate structure is often used for property ownership, especially when seeking commercial funding.
Wise Business Finance works with a large panel of both traditional high street banks and non-bank owned commercial property finance providers. When it comes to arranging a commercial mortgage for a business, who to approach comes down to numerous things to include the financial strength of the business, the intended use and the property type. In this case we approached a well-known bank, with our client’s existing business acting as the tenant for the new property. We worked closely with both the client and the lender to demonstrate affordability of the loan and to ensure the proposed repayment structure worked effectively for the business.
The client contributed a sizeable deposit, showing a strong commitment to the property investment, and we sought funding over a 15-year term. As is common with many lenders, the bank provided a 5-year commitment but with monthly repayments calculated on a 15-year profile.
In addition to supporting the client with his loan application, we also helped him work with the Bank to set up a new bank account, this was required for the monthly repayments that were being made from the newly formed SPV.
Having known us for over 10 years, our client appreciated our hands-on approach and the fact that he could easily get in touch with us whenever he had any questions. At Wise Business Finance, we know that maintaining strong communication between all parties, the client, the lender, the solicitors acting for each party, and ourselves, is the key to ensuring a smooth and successful outcome.
If you are looking to purchase a commercial property and require guidance and support in ensuring your application is approved, contact us today on 01635 785400 for more information on our range of commercial mortgages.
