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BRIGHTSTAR SECURES FREEHOLD FOR PUB LEASEHOLDER

Objective

We were asked to research solutions to enable our introducer’s client to purchase the freehold of a pub in Cornwall that they have been leasing. The lease was originally offered with the ‘right to buy’ within the first two years.

Obstacle

The client had very little trading history as they took on the lease in 2019 and shortly after, were forced to close due to the pandemic and the deadline to purchase the freehold was fast approaching.

Outcome

Brightstar’s team of commercial finance experts were able to source a mortgage via a challenger bank who were willing to lender against one year’s full accounts and up-to-date management information. Brightstar were able to raise £188,995 on £285,000 so the landlord is now operating the pub as a freeholder, having beaten the right to buy deadline.

 

This case study demonstrates that commercial mortgages are still available post Covid-19, even for industry sectors that have been hardest hit by the pandemic.

 

Summary of case:

  • Advance – £188,955
  • Rate – 5.5% + BBR
  • Term – 25 years, capital repayment
  • Commission paid to introducer – £1,944

 

SUBJECT TO STATUS. 

PRODUCT AND CRITERIA AVAILABILITY SUBJECT TO CHANGE OR WITHDRAWAL AT ANY TIME.

FOR INTERMEDIARIES ONLY.

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