Background – Helping an architectural practice secure ownership of their premises
Some of the most rewarding cases that we get involved in raising finance for are those where the solution ends up being almost the opposite of where everyone expected it to be from the start. Giles Codrington, ASC Director in London, had one such case recently, which he helped the client to secure finance successfully. Our clients are the proprietors of a well-established business, an architectural practise currently operating from rented premises situated at Old Marylebone Road.
Challenges – Finding the right property and securing funding simultaneously
Our client’s plan was to move from their rented premise above, to freehold offices in North West London. We helped the client secure what they needed, £1,575,000 to complete the purchase of the new offices. We were able to do a first charge over the freehold of the office premises which our client (with an estimated value of £2,250,000) was paying £125,860 per annum in rent, and ASC ensured that the cost of servicing the loan would be the same monthly sum.
Solution – A proactive approach to loan approval before purchase
What was interesting in this case was that the approach the team used to get this favourable arrangement for the client was to get the loan approved in the first instance, before the client had found the property. That meant that he could look for properties with more confidence, speed up the transaction, and thus being able to negotiate the price more assertively.
Outcome – A successful purchase and valuable broker expertise
Giles comments,” This deal really highlights the importance of the knowledge a broker can offer through our service to securing finance for a client’s project. The client would just not have been able to approach things in this way without sound tailor-made advice.”
Is it worth taking a loan to grow your business? Well, that depends on each case. But, in general terms and if your business is viable, funds to help you expand as we see in this case, can mean more space, more employees, and more customers which can be an overall positive step.
As with any other financial product, each case is dealt with separately, and can be tailored to maximise the outcome. If you think your business may be able to take advantage of this type of financial product, please contact your local ASC office for more details.
