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Owner-Occupied Trading Business Purchase


Our clients’ wanted to purchase a vacant commercial property with the intention of setting up a convenience store on the ground floor and living in the flat above the shop.


There were a few obstacles to overcome here. Firstly, the residential unit was over 40% of the overall property and hence this was simultaneously a regulated mortgage and a commercial mortgage. This is a combination that does not fit with manylenders. Additionally, the property was vacant and with no financial accounts for an existing business to be able gauge affordability. Finally, the clients had no previous experience ofrunning a retail business.


We approached a number of the mainstreamcommercial lenders in an attempt to obtain the lowest possible pricing for the clients, but unfortunately their lack of relevant experience led to the application being declined. We discussed the alternatives with the clients’ and they were certain of the potential for the property that they were happy to look at higher interest rates to secure the property. Ultimately, we were able to fund their £130,000purchase with 60% lending.

Commercial Criteria

  • Commercial loans up to 80% LTV
  • Average margins from 2% to 5%
  • Average loans duration 5 years
  • Loan terms from 2 to 30 years
  • Average interest rate circa 4%
  • Average lender fee 1.5%


Case Type: Commercial trading (owner-occupied)
Value: £130k
LTV: 60%
Location: Bury