Retail Parade Investment Mortgage in South Yorkshire
£1,250,000 · 20 years · 6.50% fixed 5 yrs. An experienced commercial property investor was refinancing a South Yorkshire retail parade of six units, five of which were let to established local traders on five-year lea...
The Client
Experienced commercial property investor
The Challenge
An experienced commercial property investor was refinancing a South Yorkshire retail parade of six units, five of which were let to established local traders on five-year leases. The sixth was vacant and the investor's existing lender had declined to refinance until it was let. The maturing mortgage was creating time pressure.
Our Solution
Doulton placed the refinance with a commercial investment lender willing to accept one void unit - the strong WAULT (weighted average unexpired lease term) on the five let units and the low LTV gave sufficient comfort. A realistic void allowance was built into the underwriting.
The Outcome
Refinance completed before the existing mortgage matured. The void unit was subsequently let within four months of refinancing, bringing the parade to full occupancy. The new mortgage rate was 0.55% lower than the previous facility. Key highlights: One void unit accepted by commercial investment lender; Strong WAULT on let units used to support application; Rate 0.55% below previous facility - material saving.