COMMERCIAL
AND MIXED-USE

Short-term loan facilities secured against commercial/semi-commercial property in England or Wales with or without a tenant in place. These are an unregulated products. The security property cannot be occupied or have ever been occupied by the borrower or a family member if the loan is taken in a personal capacity.

OVERVIEW

* 3 months’ minimum interest applicable on any facility redeemed within 3 months
** This is Pivot’s standard Arrangement Fee, which is flexible and can be discussed with the Origination Team

commercial

INDICATIVE RATES

LTV (existing use)  | Monthly interest
<50% | From 1.00%
<65% | From 1.05%
<70% | From 1.10%

Key criteria

1st charge loans up to 65% LTV based on Open Market Value depending on asset quality
Property does not have to be income generating
A1, A2, B1, B2, C1, C2 and D1 use classes considered
Plots of land considered as security
Terms from 3-15 months

INFORMATION REQUIRED

Location of security; Loan required; Borrower type; Estimated value of security; Purpose of loan; Exit strategy; Additional security; Term; Tenancy agreement

57.78
%LTV

CASE STUDY 1:
1st charge loan secured against an office block in South London

LOAN AMOUNT: £2,600,000

An offshore borrower applied for a loan to complete on an office block that they had exchanged on. As the unit was vacant and they were an offshore borrower, they were finding it difficult to obtain a high street loan. Pivot was able to accept a retype of an existing valuation and complete within an expedited timeframe.

64.44
%LTV

CASE STUDY 2:
1st charge loan exceeding standard LTV parameters
LOAN AMOUNT: £2,100,000

The borrower was a repeat client with no adverse credit issues, so standard LTV parameters were allowed to be stretched. A second charge was also taken against their primary residence to provide the requisite funds to complete the purchase of a commercial investment property.

64.22
%LTV

CASE STUDY 3:
1st charge loan secured against a restaurant in Essex
LOAN AMOUNT: £860,000

The borrower was a restaurant owner who required a facility to refinance his restaurant in Essex with the aim of obtaining development finance within twelve months. While there were some historic credit issues, Pivot was comfortable with the risk profile as both the primary exit and backup exit were sale.

MIXED USE

INDICATIVE RATES

LTV (existing use)  | Monthly interest
<50% | From 0.95%
<60% | From 1.00%
<65% | From 1.05%

Key criteria

1st charge loans up to 65% LTV based on Open Market Value depending on asset quality
Property does not have to be income generating
A1, A2, B1, B2, C1, C2 and D1 use classes considered
Plots of land considered as security
Terms from 3-15 months

INFORMATION REQUIRED

Location of security; Loan required; Borrower type; Estimated value of security; Purpose of loan; Exit strategy; Additional security; Term; Tenancy agreement

55.23
%LTV

CASE STUDY 1:
1st charge loan secured against shops with residential units above

LOAN AMOUNT: £757,000

The borrower was provided with a facility to refinance an existing loan, secured against an arcade of 14 shops which included some residential units above. The borrower refurbished the units to attract new tenants into the vacant units and the loan was then repaid via a long term commercial mortgage.

61.36
%LTV

CASE STUDY 2:
1st charge loan secured against a mixed use scheme in North London
LOAN AMOUNT: £1,350,000

The borrower approached pivot for a loan to purchase a shop with residential units above in North London. The aim was then to apply for planning permission to extend and increase the number of residential units. Development finance provided the exit.

60.20
%LTV

CASE STUDY 2:
1st charge loan secured against multiple care homes and residential units
LOAN AMOUNT: £4,800,000

The borrower had a multi-SPV structure and owned 6 assets with 8 title. A high street lender was willing to provide the exit refinance but required a simple, single borrower ownership structure. Pivot provided a bridge to enable the borrower to conduct the necessary legal changes.