Case Study: Commercial Mortgage Restructuring Yields Savings for Healthcare Business

Commercial Mortgage Restructuring Yields Significant Savings for Healthcare Business

Area
London
Capital Raised
£2m

In the competitive healthcare sector, efficient financial management can make a significant difference to a company's bottom line and growth potential.

When approached for a seemingly straightforward commercial mortgage, our team identified an opportunity to restructure our client's entire property portfolio financing, leading to substantial long-term savings.

The Scenario

Our client, a thriving healthcare business with multiple sites across the UK, approached us seeking a £400,000 commercial mortgage to purchase their Bristol office, which they were currently leasing. They already owned properties in London and Birmingham.

Initially, they had received high-interest rate quotes due to the relatively small loan size, and approached us for a bespoke comparison of their options.

However, after initial dicussions, our team recognised that this presented an opportunity to review and optimise their overall property finance strategy.

The Solution

After a comprehensive analysis of their property portfolio and existing debt, we proposed a strategic restructuring of their commercial mortgage finance:

  • Consolidate all existing debt into a single commercial mortgage, secured against the London property, which had the highest value.
  • Release equity from the London property to purchase the Bristol office outright.
  • And also clear their existing charge on the Birmingham office.

This approach would result in:

  • Two unencumbered assets (Birmingham and Bristol offices)
  • A single commercial mortgage secured against the London property
  • A lower overall loan-to-value ratio thanks to the high value of the London property, making them eligible for lower interest rates

The final terms were:

  • Total loan amount: £2 million
  • Term: 15 years
  • Type: Owner-occupied commercial mortgage (as the company operates from the property). Note: owner-occupied commercial mortgages generally have more lenient loan-to-value requirements than standard commercial mortgages.

We also knew our client’s requirement was attractive to lenders, thanks to the large loan size and relatively low loan-to-value, so we were able to pitch the best offers from each lender against each other.

The entire refinancing marked close to a 2.5% reduction in the interest rate they’d be paying on their debts over the 15-year term; a saving that itself would cover the entire monetary cost of purchasing the Bristol office.

By taking a holistic view of our client's property finance needs, rather than simply fulfilling their initial request, we were able to deliver a solution that not only met their immediate needs but also:

  • Simplified their debt structure
  • Reduced their overall interest payments
  • Freed up capital for future investments
  • Strengthened their balance sheet with two unencumbered properties

Simon Mullins

Finance Broker CeMAP

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Paige Dumpleton

Finance Broker CeMAP

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Max Mallinson

Finance Broker CeMAP

Cardiff

0117 332 5977

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

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Jonathan Moffatt

Head of Business Finance

Cardiff

0203 880 8890

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Alex Morris

Private Client Adviser

Bristol

0117 332 5061

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I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Scott Dutfield

Finance Broker

Cardiff

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As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you

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Carly Cheeseman

Head of International

Bristol

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I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Nick Kerley

Finance Broker

Cardiff

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Louis Levine

Finance Executive CeMAP

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Bridging Team

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Sam Baker

Finance Broker

Cardiff

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Fergus Allen

Senior Finance Broker

Cardiff

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Jacob Phipps

Finance Broker

Bristol

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I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.

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Jack Spillane

Finance Broker

Bristol

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Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need. customDatabaseField-8455

Mathew Phillips

Senior Finance Broker

Bristol

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Alex Chambers

Senior Private Client Adviser

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Luther Yeates

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Sam ONeill

Senior Finance Broker

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