GETTING THE RIGHT ADVICE

With challenging economic conditions in the property sector, finding the right finance you need for property investment at a good rate is becoming increasingly difficult. We can help property investors secure finance at market leading rates.

THE ISSUE

We were recently introduced to a client by a firm of solicitors who had advised them for many years. The client had a number of loans on various property assets he owned and he’d been advised to consolidate all his existing loans onto his commercial investment portfolio. As well as simplifying his outgoings, the additional funds were to repay debt on some of the assets which he wanted to gift when implementing some Inheritance Tax planning advice.

Despite his longstanding relationship with his bank they were unable to provide a loan. The units he owned (built in 1950s) were in poor condition, required considerable maintenance and some of them were being used against planning usage. In addition, he wanted to borrow funds over a 12 year term, which meant he would finish repayments when he was 80 years old! 

Property Value:           £2,000,000
Current Mortgage:       £700,000
Mortgage Required:    £1,250,000 
Gross Rental: circa £230,000 p.a
Break option on all leases in three years time.

THE SOLUTION

We approached a panel of six lenders active in the commercial investment market who would be able to offer attractive standalone lending terms. Four of the six lenders approached wanted to provide a loan and thus the challenge was to ensure that the structure was correct and priced as attractively as possible. For a 1% arrangement fee, we managed to secure funding of £1.3million over 12 years at 1% over 3 month LIBOR or 1.75% over Bank Base Rate.

HOW WE WORK WITH YOU

We will provide you with the right advice at the right time in order to make the maximum financial impact. We do this by providing you with a Partner who is accessible, who will take the time to understand your business and who will co-ordinate a team of accounting, tax and audit specialists to successfully meet your objectives.

ABOUT KINGSTON SMITH'S PROPERTY TEAM

Kingston Smith is a top 20 firm of Chartered Accountants. Our property team has considerable experience in the property sector and works with clients in development, construction, investment and management.  We help these clients run their businesses more successfully by providing practical advice such as planning ownership structures to minimise their tax exposure, accounting services ranging from bookkeeping and management accounts to the preparation and audit of year end financial statements and helping source alternative methods of funding.

To find out more about Kingston Smith's bespoke services to the sector click here

CONTACT US

Kingston Smith Property Team 

Martin Muirhead  +44 (0) 20 7566 3705 
Heather Powell +44 (0) 20 7566 3811
David Benton  +44 (0) 1708 759 701 
David Montgomery +44 (0) 1737 781 545
Jonathan Seymour  +44 (0) 20 8848 5531 
Nigel Birch +44 (0) 1727 896 006

Blacktower Financial Advisers 

Beverley Ham  +44 (0) 20 8336 6350 
Adrian Dadds +44 (0) 20 8336 6350

Funding advice is provided by Blacktower Financial Advisers Limited, who are part of Kingston Smith.  This is an example of what has been achieved rather than a comment on specific availability of funding.  Blacktower Financial Advisers Limited is authorised and regulated by the Financial Services Authority.  The FSA do not regulate tax advice, investment in commercial property or commercial mortgages.