£2.2m complex refinance for commercial block in Knightsbridge

​The Scenario

​

Our client - a HNW individual who operated a successful pizzeria within Knightsbridge for over 30 years. As their current lender withdrew from the market, their lender put them onto a higher standard variable rate and advised them to look to obtain new finance from a new lender. Their current lender had previously forced them to have capital repayment mortgages which meant cash flow was lower than the client would have liked.

​

Being a pizzeria, their business had suffered from the COVID struggle and was closed for prolonged periods of time making previous years figures look weak and having to take on debts to be able to pay staff and service the loan to their existing lender. 

​

The owner currently had £1,800,000 of an outstanding balance upon a block in Knightsbridge worth £9m and wanted to be able to refinance the high interest business debt onto a longer term, lower rated commercial mortgage. ​

​

The client also rented out sections of this block in Knightsbridge which previously couldn't be considered as income to aid borrowing due to this being an Owner-occupier commercial mortgage.

​​

The Solution

​

After researching their options, the owner was referred to SFS to aid in the refinance. 

​

Going through their finances allowed us to be able to understand more about how the business functioned and how the new years income was going to aid in the commercial mortgage assessment.

​

By having fantastic relationships with lenders managers, we were capable of securing a hugely beneficial deal for the client:

​

• Refinance of the original £1,800,000.

• Restructuring of the £400,000 they had accrued in loans to be added to the new commercial refinance.

• Reducing the £400,000 from a 11% interest rate, down to a 5.54% interest rate. 

• Refinancing with no lender arrangement fee saving them over £33,000 over what other firms had quoted them.

• Interest only option due to us being able to class this as a commercial investment property as the amount or area the client used had now changed from over 40% of the building to less than 40% of the building. Allowing rental income to be included to service the loan and a change to interest only.

​

Due to our expert knowledge and want for a great outcome we received this result in less than 5 weeks from initial enquiry.