The people, amounts, property and circumstances are invented to explain a borrowing brief. No lender, rate, approval, completion or client outcome is claimed.
- Loan requested
- £950,000
- Loan type
- Commercial finance
- Property type
- Commercial premises
- Illustrative price
- £1,400,000
- Contribution to price
- £450,000
- Illustrative loan-to-value
- 67.9%
The price contribution excludes taxes, fees, interest, works and other transaction costs. Those need a separate budget. The ratio illustrates arithmetic, not lending criteria or eligibility.
The borrower’s brief
A trading business wants to buy London premises for £1.4 million instead of continuing to rent. The proposed borrowing is £950,000, with £450,000 towards the purchase price. The directors want to retain enough working capital to keep the business operating during the move.
The question behind the loan
The premises purchase and the business’s day-to-day cash needs must be assessed together. The legal use, title, condition, fit-out requirements and responsibility for the borrowing need to be clear. Forecasts should distinguish recurring operating performance from one-off moving and refurbishment spending.
Information to bring together
- Business accounts, current trading and a cash-flow forecast with clear assumptions.
- The proposed borrower, ownership structure and potential security arrangements.
- The property’s permitted use, title, survey and required fit-out work.
- Purchase costs, professional fees and the working capital left after completion.
Where the assessment goes next
Compare the total commitment with the business plan before selecting a finance route. The next step may be revised borrowing, more cash retained or a different property timetable. No commercial terms, valuation outcome or personal-guarantee arrangement is assumed.
Discuss your own circumstances
A similar loan amount or property type does not mean the same finance is available. Income, commitments, credit history, the property and current terms need an individual assessment. Tell Jack what you want to achieve and any part of the plan that remains uncertain.
Prepared for Jack Cousins, Head of Mortgages at Lockhart Murphy. Updated 10 November 2026.
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