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The Client
The client is a business owner whose company had experienced consistent growth and required larger, more suitable premises to support ongoing operations. They were keen to move away from leasing and instead invest in a commercial property that could support both their business needs and long-term financial goals.
The Situation
The client identified a fully commercial office building with a purchase price of £650,000. Their objective was twofold:
- To occupy the ground floor as their company’s main trading premises
- To let out the first and second floors to other businesses to generate rental income
Previously, the client was paying approximately £4,000 per month in rent, which was impacting cash flow and limiting reinvestment into the business. They required a commercial mortgage solution that would allow them to complete the purchase while maintaining financial flexibility.
The Solution
We structured and underwrote a commercial mortgage tailored to the client’s mixed-use requirements. A loan of £412,775 was secured against the property, enabling the client to complete the purchase while retaining sufficient working capital.
The funding solution took both the owner-occupied element of the building and the investment income generated from the upper floors into account, ensuring the mortgage was affordable and sustainable.
The Benefit
By purchasing the property, the client was able to:
- Eliminate £4,000 per month in rental costs by occupying the ground floor
- Generate £28,000 per annum in rental income from the first and second floors
- Control their trading premises and protect the business from future rent increases
- Begin building long-term commercial property equity
The Result
The transaction completed successfully, allowing the client to move into their own premises while simultaneously creating a new income stream. The combined impact of rental savings and income significantly improved cash flow and strengthened the overall financial position of the business. The client now benefits from a stable operational base and a commercial asset that supports both present growth and future investment plans.
Client Testimonial
With West One Commercial Loans made the entire process straightforward and stress-free. They understood exactly what I was trying to achieve and structured a deal that worked for both my business and my long-term plans. Owning the building has made a huge difference to our cash flow, and the additional rental income is a real bonus. I wouldn’t hesitate to recommend them.
