£266k Commercial Mortgage on Complex Sale and Leaseback Deal

The Situation

The client required funding to acquire the commercial office property valued at £425,000. During the process, an initial lender withdrew their offer following receipt of the valuation report. Although the valuation itself was acceptable, the surveyor’s assumption of a potential 12-month re-let period fell outside of the lender’s credit criteria. This, combined with the sale and leaseback structure, introduced additional complexity and created time pressure to secure an alternative funding solution.

The Solution

West One was able to step in promptly, reviewing the case and issuing terms at speed, offering a loan amount of £266,370, equating to 66.24% LTV. The purchase was structured as a sale and leaseback, with the existing owner and tenant remaining in occupation on a 12-month lease after the sale, providing an initial income stream from day one.

The Benefit

A key advantage of working with West One was our willingness to accept a reworked version of the original valuation report, avoiding the need for a full revaluation and reducing both time and cost.

By securing funding through West One, the client was able to complete the purchase without incurring additional valuation costs or delays. The structure of the deal provided immediate rental income while securing a commercial asset that would support both long term income generation and future capital growth.