A Complicated Commercial History Requires a Focused Refinancing Solution

Loan Amount:
£3,059,000

Property Value:
£4,370,000

LTV:
70%

Commercial investments can face unexpected challenges, even when everything is planned for from the beginning, and sensible plans are put in place to mitigate risks. A seasoned commercial property investor turned to us for refinancing following a complicated restructuring that allowed the underlying business to continue operating.

The end-result, while appropriate for the borrower’s circumstances, created potential issues from an underwriting perspective. However, our underwriter got to work to find a way to deliver finance in the face of legal and structural challenges.

Contingencies for the framework involved

We started by exploring the rationale behind the borrower’s decision to enter a unique structure. By raising the case internally, we saw that the legal framework the borrower utilised was indeed the best option for their circumstances.

Furthermore, we put a contingency in place to ensure we could continue to operate in the face of any further complications. We also identified a liability within the borrower’s financial history which threatened to slow the deal down. But in working closely with the broker involved, we confirmed this liability had been covered, and no further outgoings were outstanding.

With all this covered, we turned our attention to the exit strategy. The borrower planned to refinance onto a long-term commercial loan. Following a number of calculations, we determined their plans were feasible, and we provided the funding required.

We’re ready for rising commercial demand

Commercial properties hold a lot of potential for investors, and as we move into 2026, we’re likely to see portfolio investors utilise unique structures to streamline their purchases, and cut their costs.

Fortunately, we’re ready for this at Market Financial Solutions. Across our products, we can work with OpCo/PropCo structures, limited companies, and more. We’re also able to accommodate investments in various types of businesses and sectors. This can include care homes, warehouses, and manufacturing hubs.

We are willing to give every commercial case that comes across our desk a fair hearing. We’re ready for your call.

FAQs

What kind of issues in a borrower’s background could delay or derail a commercial property investment?

If borrowers have issues such as company voluntary arrangements (CVAs), liquidations, bankruptcies, or individual voluntary arrangements (IVAs) in their backgrounds, it may limit their ability to attain finance in the lending scene. At Market Financial Solutions, we can consider those with adverse credit issues such as defaults and CCJs. Every case is reviewed on its own merits, with the strength of the security, borrower profile, and exit strategy all taken into account. While some lenders may automatically decline an applicant with a complex background, our approach is to assess the wider picture and look for workable solutions where possible.

Why would a borrower invest in property via a corporate set up?

Investing in property via a corporate set up can lower one’s tax costs and/or streamline the investment process. This route can also separate personal and business liabilities, making portfolio management more efficient. However, this is dependent on individual borrower circumstances, and professional tax or financial advice should always be sought to determine the best approach. A corporate structure can also make it easier to grow a portfolio over time, as profits can be retained and reinvested within the business rather than being drawn as personal income.

What other setups can Market Financial Solutions work with?

On top of OpCo/PropCo and limited companies, we can work with LLPs, SPVs, onshore and offshore trusts, and more. All our deals are underwritten from day one, with the assigned underwriter clearly outlining what we can accommodate and what’s needed to progress. Our experience allows us to handle layered or non-standard ownership structures with confidence and efficiency.

What type of commercial properties can Market Financial Solutions lend on?

Our loans can be used for a broad range of commercial and semi-commercial properties. This includes office blocks, shopping centres, pubs and restaurants, warehouses, flats above restaurants and more. Our underwriters will confirm suitability early in the process, ensuring clarity and speed for brokers and borrowers alike.