Sale & Leaseback
Release the equity in your commercial premises without the burned of loan repayments.
What services do they provide?
We have partnered with a specialist commercial property company that helps businesses grow through sales and leaseback services.
Straight sales and leaseback transactions with owner occupiers. This is where you sell your property and then rent it back for a fixed period of time. This gives you a significant cash injection in to the business.
Bespoke buy and lease service. They will acquire the commercial premises and you can agree to lease it from them. This enables businesses to browse the ‘for sale’ market when looking to lease a premises.
Why use Sale and Leaseback?
Poor accounts – You may been operating your business for a number of years with mixed performance and last year made a loss. You have recently signed new contracts with large customers and must now raise funds to service these contracts. You currently have a business loan and a 40% LTV mortgage on your building.
Exit bridge finance – You may have purchased your trading premises using a bridging loan with plans to exit onto a commercial mortgage. Perhaps the business isn’t performing as planned therefore falling short of the required criteria. You may be on a default rate with your original loan LTV increasing and now being threatened with repossession.
Restrictive covenant – A family run engineering firm is going through a buyout process, with the current management wishing to take over from the retiring owner. A restrictive covenant in the mortgage deed requires consent from the mortgage company to change ownership. The mortgage company have not given consent.
Business buyers – You’re buying a competitor’s business. The target company contains a freehold which is not of interest or cannot be afforded.
Cash flow – You’re experiencing a cash flow ‘blip’ following political/economic unrest. Unfortunately, your cash reserves have been used on a new fleet of vehicles.
Development – You are developing warehousing to occupy upon completion. You are looking for a way to exit the development finance.
Your landlord is selling – You currently lease your premises and have been informed that your landlord is selling. You do not want to relocate your business and are unable to get a mortgage due to lack of deposit.
Benefits to this service:
- No upfront fees
- Lease payments are tax deductible
- Market rent charged
- No min – max value
- Flexible, case-by-case approach
- Zero debt
- Quick completion