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Case Study – Commercial Portfolio Refinance

Executive Summary:

  • Clients: Husband & Wife operating as a Partnership
  • Clients were experienced commercial and semi-commercial landlords with over 30+ years experience
  • Clients owned 8 individual units with an approximate vale of c£1.9m, generating an annual rental income of £188,000+ per annum
  • The clients had existing borrowing of c£536k
  • Clients were looking to re-finance the portfolio to c£850k c45% LTV, which would allow the clients to undertake significant portfolio improvements and to leave surplus cash for annual repairs and maintenance, which would ensure the portfolio, remained in excellent order
  • The portfolio enjoyed 100% occupancy, although a majority of the commercial leases were less than 3-years before expiry
  • The clients had lending facilities with Danske Bank and Bank of Ireland both of whom declined the clients request to increase the level of borrowing


  • Clients ages with Mr ages 70 and Mrs aged 66
  • All of the properties were located in Ballymoney Northern Ireland
  • Mr & Mrs both were directors of a number of limited companies which had entered into Liquidation, following a CVL


  • Discussed the proposal with both Atom Bank and Assetz Capital as both have a strong appetite for commercial property located in Northern Ireland
  • Both lenders wanted details of the client’s succession plans and whether they were involved in the portfolio on a regular basis
  • Both lenders were advised of the clients directorship of failed companies and were provided with full details surrounding the circumstances around the companies failure
  • Atom Bank unfortunately could not get fully comfortable, however Assetz Capital were happy to move forward with the proposal at an expected LTV of c45%, albeit the interest rate was significantly higher
  • Clients decided to go with the Assetz ‘Agreement in Principle’ which was expected to generate c£300k in additional ‘cash’
  • Facility was part amortising with a 15-year profile and a 5-year commitment

Upfront costs

  • The valuation cost of the portfolio was in excess of £8,000, paid prior to any formal offer
  • Upon receipt of the reports and valuations, the actual Loan to Value increased to 51%, which increased the borrowing rate by 0.25% to the client as the Loan to Value had exceeded 50%
  • Client accepted the valuations and agreed to move forward with the next stage – legal
  • This required the client to pay his solicitor a cost undertaking of £6k (to cover Assetz Capital legal fees) + the clients own upfront legal fees, resulting in a further upfront commitment of £10k
  • At this stage the client had committed a total of £18k in fees

Issues Faced during Legal Process

Many times during the legal process the client was considering withdrawing, and it was only the strength of relationship the Authorised Representative had built with the client, which ensured the case continued through until completion

Overall Length of Case

 16-weeks from initial approach from the Authorised Representative through until funds were received

This case generated a Gross Income of £17,300 and was the Authorised Representative first submission


Senior Client Manager Overview

This case is a great example of what can be achieved where the Authorised Representative was fully prepared to be engaged with both the client and his client manger at ALL stages of the process, including getting the clients authority to speak directly to the clients solicitor and worked in conjunction with the case manager as follows:

  1. Chasing up the legal conditions imposed by the clients i.e. Asbestos Survey/Management Report across the portfolio, EPC Certificates for all properties with a minimum rating of E
  2. Collecting the Assetz Capital Relationship Manager from Belfast Airport to introduce the RM to the client, which included a tour of the subject security