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Purchase of a commercial property

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Our client has been operating a successful customer retail and service business from rented accommodation for the last 15 years, in a village location in the Midlands. 

Like most business owners the COVID pandemic forced the clients to act quickly with commercial decisions to adapt their business so they could continue to thrive. It therefore made complete business sense to stop renting, and purchase premises to trade from, to further strengthen the business.

When the opportunity arose to purchase the property next door, which has been vacant for around 5 years, the client spoke to Genie Lending straight away. Knowledge of the area, with a current client base and proven track record stood to strengthen the proposition. Furthermore, the property itself is a large space with an unused takeaway and restaurant on the ground floor and a huge 8 bedroom flat above.

Our client could see beyond the repairs that were required and the possible potential in the property. They approached it with a clear commercial plan, keeping their business goals in mind, whilst also seeing the opportunity for portfolio expansion. Through splitting the ground floor commercial space into a takeaway (to let out), and retail unit to move their existing business into (subject to local authority consents). They would then look to gain planning to convert the 8 bedroom flat, into four 2 bedroom flats which can be let to generate further income.

To attain the finance, our Genie Lending dedicated Case Manager worked closely with the client over the many complexities to attain the required funding. Our experienced Case Manager guided the client through the hurdles that they would face for example, with no planning in place to split the commercial element, or to convert the flats, a long term commercial mortgage is not possible. Secondly, development lenders will not lend if planning is not in place, and should they try and obtain planning before purchasing they run the risk of the vendor increasing the purchase price! Also counter to their application, was the poor condition of the property. Main stream bridging lenders were concerned that this could lead to unforeseen expense, that would be detrimental to the loan repayments.

Genie Lending were able to overcome all of this, and accomplish a bridging facility with a flexible independent lender, who could also see the potential in the property. Having visited the property personally, and obtained specialist reports, the lender was able to provide a funding facility to support the purchase, and moreover, when planning is in place will assist with the development finance.

Once fully developed the client will be able to refinance the whole building on to a long term mortgage. In doing this, our client will have an increased income from the takeaway and the accommodation rental of the flats, thus meaning that they will no longer have to pay rent on their own retail business!

If your business has found funding difficult to obtain you can trust Genie Lending to go to every extent to provide the correct finance quickly, for the result you want. As well as the household names in the industry we have access to proven lending sources who you will not find on the high street. Our aim is to help UK SME’s obtain funding for all their business requirements, whether that be growth, acquiring premises, paying HMRC liabilities or simply working capital. Genie Lending can assist with complete finance solutions.

How to Invest in Companies

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Investing in companies can be both highly rewarding and challenging. Successful investing isn’t easy, but if you follow a few fundamental principles, you’ll give yourself the best chance of success.

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Best Areas in The UK for Property Investment

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With several proposals in the London Plan to be unveiled later in November of this year, the tides of the property investment market remain unclear. The government’s commitment to reducing carbon emissions is seemingly leading to increased landowner contributions to the local government, making businesspeople think twice about purchasing property investments within the London area. With London multiplying concerning house prices and developments, what other areas of the UK are prime for opportunity?

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How a Bridging Loan can Help your Finances

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A bridging loan, sometimes known as bridging finance, is a viable short term lending option for many businesses. It’s called a bridging loan for a reason – it acts as a financial bridge, helping you along to your next destination. It gets you from A to B, until you have money coming in to clear the loan.

Many companies opt for a commercial bridging loan because they can be arranged in a very short amount of time compared to other types of finance. They are also available up to very large amounts – up to £20 million from private and flexible lenders. Short term bridging loans are available to individuals or businesses, but are generally used for the same purpose. Read more →

Should you Take Advantage of Falling House Prices?

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The nation’s housing market has been volatile over the last couple of years, mainly due to political influences such as Brexit. The UK’s uncertain economic climate has had a huge impact on the housing market, and the change in stamp duty for buy-to-let properties and second homes has also weakened demand for properties.

The slowdown in growth is usually seen as a negative thing, as homeowners will lose out when selling. However, a fall in house prices can create an interesting prospect for the entrepreneurial opportunist. If buyers move fast, they can take advantage of low house prices before they are predicted to start rising again.

Halifax, Britain’s largest lender, released its figures for June showing property prices were falling fast. UK prices fell 1% in June, which is the largest drop since January. It is the third month in a row in which figures have fallen, and that hasn’t happened since 2012. According to Halifax, growth in house prices is now down to 2.6% in June – the lowest increase in four years.

The evident slowdown is particularly evident in London, where house prices are inflated compared to the rest of the UK. In fact, over a third of properties on the market in July slashed their asking prices according to research from HouseSimple. So is now the time to invest in a property or two?

Falling House Prices: An Opportunity?

First time buyers are happy at this news as it means they might actually be able to get onto the property ladder at last. However, commercial buyers and investors could also capitalise on falling house prices. A reduction in prices means buyers get better value for money, however more owners may hold onto their property for longer to see if they will be able to get a higher price in the future.

A fall in property prices can be a perfect business opportunity – but you’ll have to act fast. You never know which way the market will swing, so you could end up paying thousands more even by pushing back your search a month or so. If you find the ideal property at an ideal price, be sure to secure funding from a lender who will pay out in good time. If a mortgage application takes too long or is refused, then the seller will look elsewhere. If you want a quick transaction then sometimes it’s acceptable to apply for bridging finance instead, which is paid out at short notice. Once the short term loan needs to be paid off, you can convert it into a mortgage if needed.

Do you want to see what property opportunities are waiting for you? Speak to us today about commercial mortgages and bridging finance.

How to Fund your Property Project

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Are you thinking of starting your very own buy-to-let empire? Perhaps you want to invest in a few commercial properties to grow your business and expand nationwide. Whatever the reason behind your exciting property project, the first step is to make sure you can receive the amount of funding you require to get started.

To give the construction company or the estate agent the go ahead, you’ll need to find a funding source. Traditional mortgages, even buy-to-let mortgages or commercial mortgages are proving hard to get and unless you meet a strict set of criteria, it’s unlikely the bank will help you finance your project. But that doesn’t mean you should give up on your dreams – there are many other ways to get your property venture off the ground.

Investing in property can be difficult when you’re just starting out. Once you have a portfolio and can prove you can make a profit it’s actually easier to secure funding – but until then here are the options.

Cash

If you have a lot of cash ready for investing somewhere, for example if you’ve received a large inheritance, then this is the best option. Buying a property upfront is very rare, but if you’re lucky enough to have a large lump sum then you’ll reap the rewards with this kind of transaction. If you have a large figure but it doesn’t reach the asking price, putting as much as you can down as a deposit will obviously reduce the future repayments.

Mortgage

A buy to let mortgage and a commercial mortgage works differently to a residential mortgage. It’s important to know the risks before applying and worth checking if you’re eligible to secure this kind of mortgage. It’s a good idea to contact a loan broker who can search around for the best deals for property investment.

Alternative Finance Solutions

The average person probably won’t be able to use the first two options to fund their first buy to let property and start a portfolio. Luckily, there is another solution – alternative finance providers. These providers use investors and other means to provide loans and tailored finance solutions when an off-the-shelf bank mortgage doesn’t suit. Even individuals with no supporting accounts or an adverse credit history could be eligible for a non-status commercial loan and development funding.

It can be difficult to find the right property funding for you, so why not chat to our property financing experts today.

5 Ways a Commercial Mortgage Could Help your Business

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The term commercial mortgage applies to any mortgage which is not being used to buy a residential property. Many business owners rely on these types of loans to get started with their first premises, or develop what they have already and expand it. Additionally, property investors can take out a commercial mortgage as a way of financing and developing a number of buy to let properties. Read more →

Should I Become a Property Investor?

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Are you considering starting your own property portfolio? As the government and the media constantly focus on the growing number of renters, it can seem like a great career opportunity or a second source of income. However, there is a lot more to becoming a successful property investor than simply getting a buy to let mortgage. Read more →