Semi-Commercial Premises Purchase
Semi-Commercial Premises Purchase One of our network members recently completed on a £300,000 semi-commercial mortgage for the purchase of a business premises with attached rental accommodation. The loan required was £221,250 on a 10-year interest-only period. Initially, high street and challenger lenders were approached as the property is part owner-occupied / part investment, but the financial accounts were not strong enough. It was then decided to change the application structure by purchasing in individual names, then leasing to the company and a private tenant upstairs, however, the client had no commercial investment or recent Buy-to-Let experience. Following a slight down valuation and the Energy Performance Certificate (EPC) being below the minimum standard for letting, the client negotiated the purchase price down with the vendor and took on the cost of getting a satisfactory EPC assessment himself prior to completing the purchase. The lender chosen was InterBay due to their flexible criteria and willingness to work with the client’s situation. The client was offered a 10-year interest-only semi-commercial mortgage with a rate of 4.99%. The network partner received over £3.3K in net commissions! To find out how you can broker commercial finance products and generate commissions – Visit www.brokerplan.co.uk/contact-us or call 0333 405 6666 to talk to our team.
100k Business Loan for SME
£100k Business Loan for SME One of Brokerplan’s network partners Amil Parikh of Acumen Finance has recently closed a 100k business loan with lender IWOCA. The client in question is a UK SME limited company, providing heating and plumbing services, who have been trading for over 10 years. They advised that they required funding to free up cash flow for business payments coming up in the next few months. The deal was submitted to a number of business finance providers but ultimately settled with IWOCA who offered the best solution for clients’ specific funding requirements. IWOCA issued terms on the 4th and the deal paid out on the 6th – A swift turn-around for the client. To find out how you can broker business loans and other commercial finance products and generate commissions – Visit www.brokerplan.co.uk/contact-us or call 0333 405 6666 to talk to our team
£1.5M Portfolio Refinance
£1.5M Portfolio Refinance One of our Brokerplan partners recently completed a refinance on a property portfolio of 4 semi-commercial buildings in London. The loan totaled £1.5 million and was placed with a high street bank. A slight hurdle was able to be overcome, there was some difficulties with tenant arrears due to Covid, however, the lender took a flexible approach. The total commission received on this case was £11,250 – With £5,625 going directly to the Brokerplan partner who introduced the deal! To find out how you can generate commissions like these, join us for an upcoming webinar! You can view our upcoming events here
Network Partner Ferrari Purchase
Network Partner Ferrari Purchase Recently we completed on a deal for a member of our network to purchase his own Ferrari. The funding required was £85,000 on Asset Finance. The deal was submitted to Paragon Bank and then Metro Bank, where it was eventually placed by a member of our in-house broker team, Matthew McCarron-Shipman. The Lender worked with us to get an independent valuation of the vehicle due to its specialist nature and completed before the weekend enabling the client to enjoy his new car that weekend. Feedback from the client – ‘Good morning! Just sending you a word of appreciation for the time you put in for this. Thanks very much indeed’
3 Recent Network Deals
3 Recent Network Deals Previous Next Above are three recent partner deal summaries from some of our current network partners, scroll through to see basic deal details and commissions earned across a variety of product areas. Want to learn more about Brokerplan and how you can generate sizable commissions from brokering commercial finance to clients? Call 0333 405 6666 to find out more or book a call with our business development team here
Case Study: Placing Quirky Cases
Case Study: Placing Quirky Cases In this case, our Brokerplan Network Partner’s client set up an SPV to acquire a residential property that will be let to a local charity to home vulnerable individuals and families on a new 10 year lease. This restricted the number of lenders who would support the acquisition as it is viewed as “reputational risk” for their lending if they ever had to serve a repossession order. The client had minimal BTL experience and required the longest term & maximum LTV possible. Our Network Partner initially began speaking with specialist buy to let lenders who are more open to lending when there are vulnerable tenants. The length of the new lease with the charity precluded them. The Partner then approached the high street banks and specialist lenders, but were declined for a number of reasons; either due to the nature of the tenants, lack of experience for the applicant, serviceability based on the rental income and also the covenant strength of the charity. Our partner was left with only one option to present to the client which was a commercial mortgage with the niche bank Cambridge and Counties. Fortunately, the terms for a commercial investment are relatively prime and the client was happy to proceed. Loan size £409,500 on a 25 year term at 4.5%+base rate. Total case income £7,595 Income split 30/70 – 70% to the Brokerplan Network.
Partner Case Study: Development Bridge
Partner Case Study: Development Bridge In this case, our Brokerplan partner was approached by a client looking to fund the build of a property in his back garden, he had no experience but he had secured planning for 2 properties with his neighbour across both their back gardens. The neighbour had funds for their part but the client did not. There were some complex access issues but we managed to get a development bridging lender to take it on faith that these could be worked around. A first charge was taken on the land with a 2nd on the client’s residence and the lender was able to raise £185k in tranche releases of money to allow the build to go ahead. The rate was not cheap at 1.35% pcm but only paid on funds drawn and there were no QS or monitoring fees. In terms of the title split and 2nd charge, the client’s bank gave a deed of consent for the title split without needing to reduce their mortgage and also gave consent for the 2nd. The complex issues meant it took months for the loan to finally come through but the lender released the first tranche of monies last week and then immediately released a 2nd tranche to allow for funds previously spent to be paid back. 1.5% commission + £750 broker fee gave a total fee income of £3,525
Case Study – Birmingham Buy to Let Purchase
Case Study – Birmingham Buy to Let Purchase For this project, the client wanted to purchase a six-bedroomed HMO (house of multiple occupants) in their limited company. The Birmingham property has two kitchens and is spread over three floors, it needed to be valued ASAP as the agents had had have a lot of interest in this property. The loan required was £262,500 and the purchase price of the property was £352,500 The Brokerplan partner approached Precise Mortgages, who declined due to the property layout, then it was discussed with Fleet Mortgages who, due to COVID restriction, couldn’t guarantee when they would be able to get a valuer. The case was then discussed with Shawbrook Bank, who found the property acceptable and could instruct valuation quickly via their online system. The client was happy to proceed with Shawbrook Bank on this basis, as the interest rate was not his priority but speed in valuation. The Brokerplan Partner who successfully managed to close this deal earned £4,388.26 in net commission. This case displays the value of a commercial broker who understands the lending and criteria and funders who operate in this market. At Brokerplan we provide both initial business launch training and ongoing training and support to help facilitate and improve our Broker’s knowledge of current products and criteria to ensure they are able to find the best solutions for their clients. To find out more about becoming a Commercial Finance Broker with Brokerplan you can email info@brokerplan.co.uk or call 0333 405 6666
£1.1M Saltburn Property Development Deal
£1.1M Saltburn Property Development Deal Brokerplan Network Partner Chris Cullen of Lunaria Finance has recently completed on a £1.1 million development loan for an experienced property developer – An amazing achievement! The client in this case had previously attempted to obtain a loan via their usual broker who, unfortunately, was unable to place the deal for them. After receiving a direct marketing communication from Chris, the client decided to give it another try, to see if Chris could secure them the funding needed to get the project off the ground. For this development, the client had carved off a piece of land – which was previously held on the same title as his private residence – And had secured planning permission to build 6 detached residential properties. They had experience developing properties but this project was the first that they were to be attempting themselves. This combined with the requirement of a charge against the client’s residential property meant that a specialist broker with knowledge of the market and lenders who were likely to consider this type of deal was needed to get the case funded. Chris presented the client’s requirements to 4 lenders and, after some discussion and consideration, eventually settled with Affirmative Finance who were comfortable with the client and their project. Affirmative Finance is a UK-based lender that specialises in short-term ‘bridging’ and property development finance and our contact Ian Harrison was invaluable in assessing and eventually getting this deal over the line for the client. Having previously attempted to obtain funding, the client had most of the information and documentation at hand to supply Chris and Affirmative with and so the application and processing was a relatively painless and smooth one. The client is currently looking at more development projects which may generate additional opportunities and revenue for all parties in the future!
3 Recent Partner Deals
3 Recent Partner Deals Previous Next Above are three recent partner deal summaries from some of our current network partners, scroll through to see basic deal details and commissions earned across a variety of product areas. Want to learn more about Brokerplan and how you can generate sizable commissions from brokering commercial finance to clients? Call 0333 405 6666 to find out more or book a call with our business development team here
