How We Restructured a £450,000 Commercial Property When Conventional Finance Wasn’t an Option

👑 KINGS OF COMPLEX CASE FILE

Sometimes a property transaction isn't difficult because the property is problematic. It's difficult because the ownership, funding, timing and commercial objectives don't fit conventional lending criteria.

That was exactly the challenge facing one of our clients.

THE BRIEF

The client needed to transfer a commercial property from one limited company into a new SPV, remove the original director and introduce a new director.

The objective was to maintain the business, establish a new lease arrangement and ultimately secure longer-term commercial finance within the new SPV.

THE PROBLEM

The property was worth approximately £450,000, but conventional mortgage finance wasn't suitable for the proposed structure.

The client also needed to move quickly and had limited deposit available.

The opportunity made commercial sense, but the traditional funding route didn't fit.

This wasn't simply a case of finding another mortgage lender. We needed to consider the whole transaction and its eventual exit.

THE OBSTACLE

The acquisition involved:

• A new SPV

• A change of directors

• A below-market-value purchase

• Limited deposit

• A requirement for speed

• A new lease

• A future commercial refinance

The property was valued at approximately £450,000 but purchased for £300,000, creating a significant BMV opportunity.

THE STRATEGY

Rather than forcing the transaction through conventional mortgage finance, we considered specialist short-term funding.

The bridging facility was never intended to be the permanent solution.

It was designed to provide the flexibility needed to complete the acquisition through the new SPV, while allowing time to work towards the appropriate long-term commercial finance.

THE FUNDING

The acquisition was completed using bridging finance through the new SPV.

Within six months, we were able to move towards refinancing with a lender whose criteria permitted the required day-one remortgage structure into the new SPV.

This allowed the bridge to serve its intended purpose as short-term finance, with the property then moving towards a longer-term commercial mortgage.

THE OUTCOME

The new SPV took ownership of the property and the new director structure was established.

The client could continue operating the business while progressing with a new lease arrangement.

The original director could be removed from the transaction and a new director introduced.

Most importantly, the funding strategy was built around the client's commercial objectives rather than forcing an unusual transaction into a conventional mortgage product.

THE IMPORTANT TAX POINT

A BMV purchase does not mean taxes or transaction costs disappear.

Stamp Duty Land Tax and other applicable taxes and professional costs may still apply. Transactions involving companies, connected parties and property transfers can also have specific tax and legal implications.

Appropriate legal and tax advice should therefore always be obtained before proceeding.

THE LESSON

The difficult part of property finance isn't always finding a lender. Sometimes it's finding the right sequence.

This transaction required:

New SPV → BMV Acquisition → Bridging Finance → New Lease → Refinance → Commercial Mortgage

That's what we mean by:

👑 KINGS OF COMPLEX

Sometimes you need to understand the deal first — then build the finance around it.

Difficult deal?

THINK ALWAYS WRIGHT.

Every transaction remains subject to lender criteria, valuation, underwriting, legal advice and applicable tax requirements.