My deal of the month was chosen for me, by Aldermore Bank.

Our clients are a Chinese couple introduced, initially, by their bank.  To their enormous credit this is a bank with whom we have not done any business for some years, because of their policy of not dealing with brokers, but they obviously knew of our expertise; still they only told the clients of the existence of “a specialist commercial finance broker on FriarGate” and left their customers to find us.

Our clients (Mr & Mrs C., who wish to remain anonymous) had just bought a shop and flat property at auction, anticipating that their bank would assist with the finance.  This was understandable.  Mr C. already owned several commercial properties and had modest mortgages with his bank.  Mrs C. also owned a few residential investment properties.

“Two is better than one” Mr C. told me, explaining that he would prefer to build up a commercial portfolio in his wife’s name also, and the property just purchased was to be in his wife’s name.  Unfortunately, their bank had decided that they did not want to do any more property lending at the moment and other banks they approached would not lend to someone inexperienced as a commercial property landlord. (Oh, how I do love short sighted lenders.)

By the time we were instructed we had about 10 working days left to meet the auction purchase completion date.  Many brokers in this position would have tried to arrange bridging finance but we prefer the challenge of getting lenders to move faster than normal and Mr C. in particular did not want to pay the extra costs bridging would have incurred.

We discussed our client’s situation with a few lenders but quickly opted for challenger bank Aldermore because, although their policy is also only to lend on commercial investments to experienced landlords, they accepted our argument that Mr & Mrs C. worked closely together.  Mrs C’s. substantial income from her longstanding employment with a top company helped.

We had a few heart stopping moments on the way with the valuer wanting specialist reports on damp, the electrics and the roof; plus the legal position was not clear and Mr C. wanted the tenant to accept a revised lease: such fun!  Mr C. however, was magnificent in whipping everyone on his side along while I worked with the bank and their solicitors.

We completed on the due date.  In their 128 page annual report and accounts the bank has four case studies of which one is on commercial mortgages.  No prizes for guessing which case it featured.

Read the full case study on pages 28 & 29 of the report here