FUNDED: Medical Centre - Commercial Mortgage

Early this year just before the lockdown one of our professional introducers, put us in contact with the partners of a medical centre in the Scottish Highlands. They required a new commercial mortgage against the practise as their existing facility was due to expire in May. 

We worked with the partners to gather all of the necessary information to carry out our initial market research for their best suited product, taking time to understand exactly what their preferred structure was. Having been on a 15 year fixed interest only facility and seen very little capital growth in the vacant possession value of the building they wanted a capital repayment facility to ensure they weren't in the same position in another 15 years. 

This year, for obvious reasons, was far more demanding on their time than most, but similar to many healthcare professionals and SME business owners alike they didn't want to have to constantly commit time to their funding as it distracted from their day to day operations, so we arranged a 20 year viable rate to avoid refinancing every 2 - 3 years on fixed rates. Given their extremely strong level of affordability for the loan and the short period for early repayment charges we were comfortable providing a variable rate as if needed it could be refinanced relatively soon without penalty and they are able to afford the facility with a substantially increased base rate. 

We placed the specialist mortgage with a retail bank achieving a rate of 2.90% plus base at 110% of the vacant possession value and 80% of the trading value. 

The process of getting the funding in place was majorly impacted for the simple reason of the security being a medical centre in the middle of a pandemic. However working in accordance with government guides during the later stages of lockdown we were able to get the property valued and the legals underway, a drawn out legal process due to the disruptions of normal working conditions led us to complete in October. We communicated throughout the process with the incumbent lender to reassure them during the period their loan ran over term as a result the client didn't incur any default costs.

When operating an organisation there is often little time and energy that can be committed to your property finance, working with a professional intermediary can help to guide healthcare operators and SME business owners alike through the process and streamline it for them.

Concept Financial Group provides access to the whole commercial mortgage market for Healthcare Organisations and SMEs so you can ensure the best product for your requirement.

If you or any of your network require funding for either commercial mortgages or short term finance please get in touch: [email protected] 0759 692 4019

Concept Financial Group LLP provide bridging finance, development funding, mortgages and secured loans for residential, commercial and semi-commercial property within the UK Further information can be found at: www.concpetfinancialgroup.co.uk.