Cost-Effective Commercial Mortgage for Retail Store

The Scenario

Our client, a successful family-owned furniture retailer, had been operating from a leased showroom in a prime location for the past decade. As their business grew, they realised that purchasing their own commercial property would be a more cost-effective long-term solution and provide them with a valuable asset for the future.

The owners found an ideal property - a spacious 10,000 sq ft retail unit in a busy shopping district. The asking price was £1.2 million. They didn't have enough capital to purchase the property outright, so needed to secure an owner-occupied commercial mortgage, but were unsure about the process and concerned about how it might affect their business's cash flow.

The Solution

After researching their options, the business owners decided to consult with Clifton Private Finance for expert advice on commercial mortgages.

Here's how we helped:

• We conducted a thorough assessment of the company’s financial situation, including their business credit score, income, business accounts, and existing assets/liabilities.
• With access to hundreds of lenders, including high street banks, challenger banks, and private lenders, we identified the most suitable mortgage products for their specific needs.
• We negotiated with lenders to secure a competitive interest rate significantly lower than what had been offered when approaching banks directly.
• We also advised on the optimal deposit amount, and they were able to put down a 30% deposit which helped secure better terms on their mortgage.
• We guided the clients through the application process, helping them prepare all necessary documentation and liaising with the chosen lender on their behalf.
• Thanks to our expertise and established relationships with lenders, we were able to streamline the application process. From initial inquiry to mortgage offer, the process took just 6 weeks.

The outcome was highly positive for the business: they successfully secured a commercial mortgage for £840,000, allowing them to purchase their ideal retail property.