£354,450 Commercial Mortgage Secured for a Share Purchase

A broker approached us to help secure funding for a client looking to buy out the other shareholders in a family-owned limited company that owned a retail investment. The client was looking to increase her ownership of the business to 99% with her father remaining the 1% shareholder.

The limited company owned 7 retail properties with a combined value of £1.5 million. The properties were occupied by four separate trading businesses, including a kitchen showroom, fireplace showroom, tile showroom and meat market. The properties were unencumbered, and the loan was required to facilitate the share purchase and raise capital as part of the wider transaction. The shared ownership structure made the case more complex, as the transaction involved more than simply changing ownership of the property. The ownership of the limited company itself also needed to change, requiring two separate legal agreements to complete simultaneously. With a loan requirement of £354,450, the client needed a lender able to understand the wider structure and take a practical approach to the transaction.

We worked closely with our lender panel to identify a suitable commercial mortgage solution, securing a lender offering the most favourable terms for the client’s circumstances. The £354,450 facility allowed the client to complete the share purchase and increase her ownership of the family investment, while allowing both the property and company ownership changes to complete as part of the same transaction. By understanding the complexities of the share purchase alongside the commercial property investment, and working proactively with the broker and lender, we were able to help deliver a successful outcome for the client.