Short Leasehold Business Finance
  Short leasehold business financeIt is not unusual for just commercial mortgages to be asked several times each year for finance from clients trying to buy retail outlets such as Indian restaurants, small supermarkets, fish & chips shops, dry cleaners, care homes and so on.Five million 'high street' and other retail businesses are finding it increasingly difficult to source business fundingbecause they do not own the freehold of the building.There is a limited appetite for lending against 'high street' leasehold businesses yet demand grows every year for this type of finance, we have short leasehold finance providers on our panel with a variety of products available.One lender, we use specialises in this business area. Withfunding options for both purchase and refinance, we now have the opportunity to provide alternative finance solutions to new and existing retail clients.. Client benefits• Simple application process• Each case assessed individually• A quote can be issued same day in most cases• Lending governed strictly by affordability assessment of the businessTechnical informationShort leasehold is where there is a formal commercial lease put in place on a premises.Qualifying criteria• Minimum business lease term remaining is 5 years• Businesses normally need to have been trading for a minimum of 36 months• Clients must be owner-operators or prospective owner-operators (i.e. no "investment" businesses)• Businesses must be located in major towns and cities• Loans available for and onlyPurchase of a business• 60% LTV of businesses with accommodation, • Minimum loan £50,000• Maximum loan term is the lower of half unexpired lease or 120 monthsRefinance of a business• 60% LTV of businesses with accommodation, • Minimum loan £50,000• Maximum loan term is the lower of half unexpired lease or 60 months• Additional suitable additional freehold collateral security is required for refinance cases