The Client
An experienced property investor approached Capital B looking to refinance a mixed-use commercial building in the South East.
The client owned the property for several years and had successfully improved the overall rental profile. Their objective at this point was to refinance their existing loan to release equity which could support the purchase of additional investment properties.
The property comprised of:
- A ground floor retail unit let to an established café operator
- Two upper-floor office suites occupied by professional services firms
- One commercial unit that was currently vacant and undergoing refurbishment
The Challenge
While the property was well located and largely income producing, several lenders were reluctant to offer the level of borrowing required.
The key issues were:
- One unit currently vacant during refurbishment
- Rental income not yet fully maximised
- The client looking to release additional capital rather than simply refinance existing debt
Many lenders were focused solely on the current income rather than the property’s future rental potential once fully let.
The Solution
Through careful structuring of the transaction, we presented both the existing rental income and the projected income once the refurbishment was complete and the final unit was let.
By approaching a specialist commercial lender comfortable with value-add investment properties, we were able to demonstrate the strength of the asset and the client’s track record managing similar commercial investments.
The lender was able to take a more holistic view of the property’s potential rather than relying purely on the current tenancy position.
The Outcome
A £1.85 million commercial mortgage was successfully arranged, allowing the client to:
- Refinance the existing borrowing
- Release equity for further property investment
- Complete refurbishment works on the vacant unit
Once the final unit is let, the property will deliver a stronger rental yield and improved overall asset value, positioning the client well for future portfolio growth.
Why Choose Capital B Property Finance?
We regularly work with investors who require commercial lending solutions that fall outside standard high street criteria.
This case demonstrates how the right lender and structure can unlock equity and support further investment growth. We’re always happy to have a conversation.
Get in touch.
