How commercial property loans are assessed

"Given the complexities inherent in both commercial borrowing and restructuring, securing the right financing through experienced professionals is paramount. At Millbank Group Finance, our team of commercial mortgage underwriting experts provide the knowledge and guidance necessary to navigate these intricate processes successfully."


Focus on Comprehensive Assessment and Expertise

"During the review process, Millbank typically assesses the following key factors:

  • Property type and location
  • Lease terms and tenant strength
  • Borrower experience
  • Business financials or income
  • Loan-to-value ratio (LVR)
  • Exit strategy

This comprehensive approach underscores the importance of partnering with an experienced commercial mortgage Lender. In-depth policy knowledge and strategic lender selection have a direct and significant impact on both loan approval and pricing."

Our approach to commercial property finance

We assist with:

  • Commercial property purchases 
  • Commercial loan refinancing
  • Equity release for business or investment purposes
  • SME commercial lending
  • Business loan structures
  • Complex ownership structures (company, trust, Development)
  • Our role is to align your finance structure with your business goals, cash flow needs and long-term plans.

challenging commercial mortgage restructuring scenarios!

 

1- The Struggling Retail Center

  • Property: A 150,000 sq ft retail center in athe London  suburban area.
  • Challenge: A large department store declared bankruptcy and vacated, leaving a significant vacancy and reduced rental income. Several smaller tenants are also struggling due to increased competition from online retailers.
  • Mortgage: A £10 million commercial mortgage with a balloon payment due in 18 months.
  • Restructuring Needs:
    • Negotiating took place to avoid foreclosure.
    • Attracting new tenants to fill the vacant anchor space.
    • Restructuring the loan to account for reduced income and increased risk.
    • Potentially securing additional financing for property improvements or tenant incentives.

 

 

2- The Construction Loan Gone Wrong

  • Property: An unfinished block of flats project.
  • Challenge: The developer ran out of funds before completing the project, leaving the building partially finished and unsellable.
  • Mortgage: A £15 million construction loan in default.
  • Restructuring Needs:
    • Securing additional financing to complete the construction project.
    • Restructure the loan and avoid foreclosure.

 

 

Millbank, we don’t take a one-size-fits-all approach. We focus on strategy first, not just loan approval.

A Satisfied Customer