Leasehold Business Finance

Giles Finance has the specialist finance facility for Freehold & Leasehold Retail Businesses in England and Wales. We can finance the purchase of a business freehold & lease in so many ways and for most types of commercial premises, and also arranges funding on the following niche markets:

  • Newsagents,Fish & Chip Shops
  • Pubs, Restaurants, Take-away units
  • Corner Shops, shops with or without living accommodation
  • Hotels, guest houses, B&B’s, holiday lets
  • Industrial units, factories, offices, warehouses
  • Hotels and guest houses
  • Specialist leisure (golf, country clubs etc)
  • Health clubs
  • Care homes,Nurseries
  • Schools
  • Agricultural Units

Lending Terms for Leasehold Businesses

  • PURCHASE or REFINANCE
  • Maximum loan 50% of Purchase Price
  • Minimum loan £50,000
  • Maximum loan term is half unexpired lease or 60 months whichever lesser. NAKED LEASE!

The term “Naked Lease” refers to the fact that our panel lender will lend against the sole security of the lease of a retail business. Leasehold loans will be granted on a fixed term capital and interest Repayment Plan scheduled over a maximum period of 60 months(120 leasehold loan term with further negotiations may be possible).

The debt will be totally discharged at the end of the loan term unless redeemed earlier by the borrower. Client(s) can terminate the leasehold loan at any time during the term of the facility without incurring any exit penalties subject to payment of a minimum of the first 12 months? scheduled interest rate quoted in the Leasehold Loan Offer and charged on the outstanding balance of the Loan Account at redemption. The interest rate on this plan is 3.00% per month (APR 42.5%).

Our assessment of a leasehold transaction is determined by the simple underwriting principle that the subject business must be able to comfortably service our monthly loan repayments from day one.

Leasehold business surveyors are employed to investigate all businesses and we are guided by their findings on income and valuation in every transaction.

100% LOAN FACILITY We will always consider granting leasehold loans of up to 100% of the purchase price of either a leasehold or freehold business, provided we are offered suitable additional freehold/leasehold collateral security in a transaction.

The leasehold business valuation report must indicate that the business can service the loan satisfactorily.

GENERAL CONDITIONS We assess all cases on their own individual merits and do not adhere to rigid underwriting criteria. We will always try to convert initially unacceptable cases into positive transactions by offering guidance and inventive assistance to our clients.

We employ leasehold business surveyors to inspect all retail businesses and carry out the valuations on residential properties which are offered as collateral security in transactions.

Firstly commercial mortgage borrowers must consider the fact that commercial mortgage rates are rarely set in stone, unlike domestic and Buy to Let mortgages.

Therefore each individual mortgage is bespoke priced to match the borrower’s personal circumstances including the following

  • Up to 75% LTV (100% loan considered if additional security available)
  • Rates from 0.56% to 3.5% over LIBOR(0.56%) or BBR(0.5%)
  • No Accounts? No Business Plan? – We will still help you
  • Raising money to start a new business
  • 3 Year interest only option available
  • Adverse credit considered
  • Long-term repayment mortgages with terms up to 30 years
  • Variable, fixed and hedged mortgage structures