Acuitus Finance has collaborated with a lender to design a new term loan product for commercial investment properties.
Designed for small portfolios or single properties, the new loan aims to fill a gap in the finance marketplace which has been created by the exit from this type of lending by the clearing banks, and is not covered by the Challenger Banks..
Many investors have properties with sub five-year lease terms to expiry or to a tenant break option. It is normally almost impossible to get this type of property or portfolio refinanced. If a lender agrees to lend, they usually look for a high level of amortisation to reduce the loan as quickly as possible.
The new term loan product is specifically for sub five-year lease properties and for investors who want an interest-only loan to maximise cashflow.
Loan Conditions
New Loan facility for short lease secondary regional portfolios
For larger portfolios (£2m–£15m), a new lender has brought out a term loan facility targeting part of the market most lenders avoid. The target portfolios are regional secondary locations, and can accommodate all types of tenants and short leases.
The loan can be structured as a standard 60-65% LTV term loan, or used as an asset management facility with LTVs up to 85%.
Interest rates are tailored to the type of facility that borrowers are looking for rather than on a fixed product basis.
For more information, please contact Stuart Buchanan: +44 (0)7879 432868, +44 (0)20 7034 4850 / stuart.buchanan@acuitus.co.uk
