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
- £780,000
- Loan type
- Commercial finance
- Property type
- Mixed-use building
- Illustrative property value
- £1,200,000
- Equity after proposed loan
- £420,000
- Illustrative loan-to-value
- 65.0%
The equity figure is property value less the proposed loan; it is not a cash-release calculation. Existing debt and costs must be considered separately. The ratio illustrates arithmetic, not lending criteria or eligibility.
The borrower’s brief
An owner is reviewing finance on a London building with a shop and residential flats above it. The illustration uses a £1.2 million property value and £780,000 proposed borrowing. Existing debt, lease terms and any desired cash release need to be established.
The question behind the loan
The commercial and residential parts have different occupiers, costs and legal documents. The income schedule should distinguish each tenancy, lease expiry, rent and vacancy. The property’s title and actual use need to be reconciled before considering how the whole building is assessed.
Information to bring together
- Commercial leases and residential tenancy information, with a unit-by-unit rent schedule.
- Current debt, redemption costs and the reason for refinancing.
- Title, permitted use, access arrangements and property condition.
- Insurance, maintenance and cash reserves if one part becomes vacant.
Where the assessment goes next
The useful first deliverable is a consistent property and income schedule. The £420,000 difference between assumed value and loan is equity rather than available proceeds. Occupancy, legal review, valuation and the actual financing terms can change the proposal.
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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