Commercial Expert Funds Transition from Freehold to Ownership in Complex Portfolio Case

Commercial Expert has secured £175k funding for a newly established limited company which was looking to obtain ownership of multiple units within the same complex used for commercial and residential purposes.

Business owner Ray Mutch had been leasing various units within the property in Tain, in the Highlands of Scotland, for the past decade, operating a small shop, butchers and sub post office. Wanting to grow both the retail and butcher businesses as well as improve the fabric of the building, Ray needed affordable and fair finance to buy the freehold on the complex and fund the renovations.

The case was complex given the semi-commercial use of the property and the building itself composing of a mixture of construction types due to its original agricultural use. Despite limited appetite from Scottish lenders, we were able to secure the correct amount of finance from a lender who saw the potential in funding business in Scotland. Ray received £175,000 in funding via a 70% LTV commercial mortgage with Allica Bank at a rate of 5.5% + BoE Base Rate.

Tracey Barnes, business manager here at Commercial Expert who led on the case said: “This was a case of making sure we knew exactly what the security consisted of before the client paid out any money for valuations. “It certainly helped that we had Ken nearby to physically see the property. It all ended well and, happily, the Mutch’s can now continue to grow their business”

Commercial Expert is an independent commercial finance broker offering a comprehensive range of business finance to a broad spectrum of clients, each with differing financial requirements. We are proud to be authorised and regulated by the Financial Conduct Authority (FCA) and a full member of the National Association of Commercial Finance Brokers (NACFB) since 2008. Ray was introduced to our Scottish Highlands Representative Ken Macrae by the Highland Council Business Investment Team.

As appointed representative, Ken met with Ray to understand the complexity of the case before passing it to Tracey of the in-house finance team here at Commercial Expert who managed the application to the point of funding. Tracey also worked with Michael Horner of Allica Bank to get the loan agreed, and solicitors Rona Plowman & Jennifer Simpson from BBM Solicitors on the legal elements of the purchase.

Though the entire process took three months due to a limited choice of valuers willing to act, the structure of the Limited Company, a complex LBTT (Stamp Duty) position and opening a new company bank account, Ray received the funding needed to aid his plans. Ray said: “I knew getting into this process that there would be barriers, but Commercial Expert has been brilliant in limiting the impact of these during what I can only describe as a very stressful time.

“Any issue that arose, Tracey and the team were quick in finding a solution and ensuring the deal could complete.

“Not only does this mean great things for our family, but also it fuels a dream I’ve had a for long
time, and I can now fully excel in the business.

“I would recommend Commercial Expert to anyone in our position looking for finance.”

Tracey Barnes, Business Manager

Joining the team in 2018 after spending 18 years working for a leading UK bank, there’s not much Tracey doesn’t know about finance.