Commercial Property Refinance: Expanding an Existing Retail Unit

What was the situation?

The client was seeking to refinance two commercial premises from which they operate their wooden flooring business. These retail showrooms serve as the main hub for their operation, where they showcase their products to customers.

They approached our team for the refinancing, but were also keen to obtain additional capital to bring their significant refurbishment and shop expansion plans to life.

The clients felt that the expansion was strategically important for the business’s growth trajectory over the coming years, and felt that an enhanced showroom space would allow them to display their full product range more effectively, creating a more impressive environment for their international and local clients who regularly visit the premises.

What was the issue?

The primary challenge was twofold; achieving a balance between securing the optimal interest rate, whilst still obtaining the full funding amount required for both the refinance and expansion project. Our team needed to negotiate competitive terms that wouldn’t compromise the client’s ability to execute their business growth plans.

What was the process?

Leveraging our team’s deep market knowledge and understanding of commercial lending criteria, we began by identifying which lenders would be most suitable for this specific business profile and property type. We targeted our approach directly toward institutions known to have favourable terms for retail business premises.

We approached one of the UK’s “big four” banks, knowing their current appetite for this type of commercial property lending and their competitive positioning in the market. Our established relationship also enabled us to present the case efficiently, highlighting the business’s growth potential and the strategic importance of the expansion.

We were able to streamline the process through direct engagement with senior decision-makers at the bank, ensuring the application received appropriate attention and was evaluated holistically.

What was the solution?

We successfully secured a commercial mortgage with highly competitive terms that included the full 70% LTV required at an interest rate at 2.35% above the base rate, with no early redemption charges.

These favourable terms allowed the client to proceed with both the refinancing of their existing premises and fund their critical expansion project.

The client was particularly impressed with the smooth execution of the entire process. Despite the widely acknowledged challenges in the current commercial market, the valuation proceeded without complications, and the legal aspects were handled efficiently without unexpected issues.

The lender’s service was exceptional throughout, demonstrating that with the right approach and relationships, favourable commercial property finance remains accessible even in challenging market conditions. The successful refinance and additional funding have positioned the client to enhance their showroom experience, attract more high-value clients, and accelerate business growth.

Need some help securing development finance for mixed-use properties? Our experts are on hand to assist. Call 020 3903 9875 to speak to an adviser, or use our online contact form.