Client situation.
We were introduced to a client who needed a loan against two unencumbered freehold houses, with one being used for business purposes, who needed substantial equity release for business expansion. The client needed a lender who understood the characteristics of the properties rather than their current use, and the brokers who introduced the deal highlighted how some lenders had seen it as a mixed-use deal.
Our solution.
We structured a £2.36 million facility across both properties. The loan amount required careful assessment, especially as we needed our valuation partners to see the house being used for business purposes, but both assets were seen as strong security for a loan.
We evaluated the case as a straightforward residential bridging loan despite the use for business purposes, as that is how both properties were configured. This made it a simple loan to agree to, with a strong client profile and good assets as security.
Result.
Just over two weeks to completion on a substantial capital raising loan, providing the finance the client needed while maintaining responsible lending principles. The client could execute their business expansion plans with confidence, backed by capital that was previously locked up. This case demonstrates how property can be leveraged effectively to support business growth and development.
Business equity release from property? We structure deals that support your growth plans.