Owner-Occupier Industrial Unit Purchase in the East Midlands
£680,000 · 15 years · 6.25% fixed 5 yrs. A precision engineering firm in Nottingham had been leasing their 8,000 sq ft workshop and offices for twelve years when their landlord announced a significant rent review.
The Client
Precision engineering firm
The Challenge
A precision engineering firm in Nottingham had been leasing their 8,000 sq ft workshop and offices for twelve years when their landlord announced a significant rent review. The directors decided to purchase an alternative freehold unit on a nearby industrial estate rather than accept the new terms. Their existing bank offered a commercial mortgage but at a rate the board considered uncompetitive.
Our Solution
Doulton accessed the whole-of-market commercial mortgage panel and placed the loan with a challenger bank offering a materially better rate than the client's clearing bank. The owner-occupier status, long trading history, and strong balance sheet made for a clean underwrite. The mortgage completed in six weeks.
The Outcome
Unit purchased at a price that, when modelled over fifteen years, demonstrated total occupancy costs substantially below the revised lease terms. The firm eliminated rent exposure and gained a balance sheet asset. Key highlights: Whole-of-market search beat client's own bank rate; Owner-occupier profile made for clean underwrite; Total 15-year cost well below lease alternative.
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