Background
When our client wanted to purchase a new residential property, they looked to unlock equity from two existing semi-commercial investments held on separate titles. While the properties provided strong security, new commercial leases first had to be negotiated and implemented before the lender would approve the remortgage.
While the properties provided suitable security for the refinance, the lender required new commercial leases to be negotiated and implemented before the semi-commercial remortgage could proceed. This introduced additional legal work and required close coordination between the client, solicitors, tenants and lender.
By managing the process from start to finish, Propp helped secure the funding needed and kept the transaction moving despite the additional legal complexity.
Finance Summary
Purpose: Remortgage to release equity for a residential purchase
Security: Two semi-commercial properties (separate titles)
Property Value: £290,000
Loan Amount: £187,460
Rate: 7.79% Fixed
Initial Rate Term: 5 Years
Term: 144 Months
Initial Monthly Payment: £1,482.29
The Challenge
Refinancing semi-commercial property often involves additional complexity compared to a standard residential mortgage.
Although the properties provided sufficient security, the transaction couldn't progress until the updated lease agreements had been negotiated and formally implemented.
With multiple parties involved and strict lender requirements to satisfy, timing was critical. Any delays to the lease negotiations could have impacted both the remortgage and the client's residential purchase.
The Solution
At Propp, we compare finance solutions from across the market to help clients find the most suitable commercial mortgage option for their circumstances.
Once the lender's conditions had been met, we secured a competitive 7.79% fixed rate over a five-year initial term, allowing the client to release the equity they required with confidence. By managing communication between all parties and keeping the transaction moving, we were able to secure a competitive fixed-rate remortgage that released the equity the client needed while satisfying the lender's requirements.
The Outcome
The remortgage completed successfully, releasing £181,836.20 in net funds for the client to put towards their new residential purchase.
By navigating the additional complexity around the commercial leases and keeping every stage of the transaction on track, we helped deliver a smooth completion while enabling the client to retain both investment properties and move forward with their next purchase.
Need to release equity from your property portfolio? Whether you're refinancing semi-commercial, commercial or residential property, Propp compares finance from across the market to help you find the right solution for your next investment.
