A manufacturing client based in the East of England had been renting their existing commercial premises for around 10 years. They had a solid relationship with their landlord, the rent was reasonable and they had not really thought about the option of buying their own premises.
After reviewing the client’s profitability, cashflow and capital reserves it was established that they would qualify for a commercial mortgage to buy their own premises, with the following customer benefits:
- Annual cost of borrowing (including set up fees and legal costs) was materially lower than the cost of renting over a 10-year period
- Owning their property removed the risk of their lease not being renewed and it allowed them to develop the premises without needing the landlord’s approval
- After the loan is repaid over 10 years the property belongs to the customers which will boost the balance sheet and will create an asset to use, leverage or sell in the future
In cases like this, we can use our network and expertise to provide access to funding that can help you achieve your business goal’s far sooner than you thought possible and we can even provide you with ideas that you may not have considered to either buy the property the property that your currently rent or an alternative site.
Thousands of pounds saved over the long term
