The situation

An established hospitality operator running several successful businesses in Yorkshire identified an opportunity to purchase a property in a popular and busy district close to the city centre.

One of the businesses was operating from rented premises nearby. Purchasing the new property would allow the business to relocate, improve the trading environment and remove a significant annual rental commitment.

Owning the premises would also give the business greater control over its long-term location while creating a property asset within the wider business structure.

The key was arranging funding that supported both the property purchase and the trading business behind it.

The approach

The starting point was understanding the wider commercial position. This included reviewing the trading performance of the existing businesses, the proposed property purchase and how the move would strengthen the group overall.

A property company and operating company structure was established, allowing the business to trade from the premises under a formal lease while ownership of the property sits within a separate company. This is a common structure for owner-occupied commercial property and provides clarity for both the business and the lender.

The application focused not just on the property itself, but on the strength of the trading businesses, the available deposit and the affordability of the facility once the relocation was complete.

Following lender engagement, terms were agreed for a commercial mortgage facility representing 75% loan-to-value against the expected end value of the property.

Importantly, the facility also included staged funding for refurbishment works, allowing improvements to be completed without the client needing to fund contractor invoices upfront.

The outcome

A £243,750 commercial mortgage facility was arranged to support both the purchase and refurbishment of the property.

The structure included:

• £203,750 initial drawdown to complete the purchase

• £40,000 staged funding released as refurbishment works were completed

• A long-term facility aligned to the trading business

By acquiring the premises, the client was able to relocate the business into a property that better supports the operation while removing an ongoing rental commitment.

The result is a stronger long-term structure, with the business operating from premises it controls while the property sits as a separate asset within the wider group.

Client feedback

“The process was clear from the start and the advice made a real difference to how we approached the purchase. The structure allowed us to secure the property and complete the work needed without putting pressure on the business. We now have premises that properly support how we operate and the whole transaction was handled with clarity and professionalism throughout.”

Dariush - Leeds

Considering purchasing the premises your business operates from?

Many successful businesses reach the point where owning their premises makes more sense than renting.

If you are considering purchasing the property your business trades from, refinancing an existing commercial property, or moving into premises that better support the next stage of growth, Expert Finance can help structure the funding around that move.

Start the conversation and explore what may be possible.