Our client is the proprietor of a thriving semi-commercial property housing a pizza shop, alongside two residential flats, comprising a 6-bed HMO and a 5-bed HMO. These properties, held under a limited company, boast a combined valuation exceeding £1m.
Seeking to secure £500k for an ongoing acquisition, Senior Associate Dak Lam devised a strategic solution which involved restructuring the property title by segregating the flats onto long-term leaseholds. Additionally, Dak recommended establishing a subsidiary SPV, where the holding company would retain ownership of the food establishment while becoming a shareholder in the new SPV.
Simultaneously, Dak identified a lender receptive of the proposed structure, accommodating the long leasehold arrangement, retention of two flats under a single title, and the segregation of the hot food business into a separate entity. This streamlined approach ensured our client's financing needs were met, while optimizing the property's potential for future growth and investment.
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