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
- £800,000
- Loan type
- Commercial finance
- Property type
- Commercial premises
- Illustrative price
- £1,250,000
- Contribution to price
- £450,000
- Illustrative loan-to-value
- 64.0%
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 is considering buying Wimbledon premises for £1.25 million rather than renewing its lease. It proposes £800,000 commercial borrowing and £450,000 towards the price. Fit-out, moving costs and trading reserves are separate from that contribution.
The question behind the loan
The premises decision must work for the operating business as well as the property purchase. The comparison needs to consider occupancy costs, repair responsibilities, disruption during the move and the cash left for wages, suppliers and quieter trading periods.
Information to bring together
- Business performance and cash-flow information, including existing finance.
- The proposed owner, occupier and relationship between any property and trading companies.
- Property use, condition, access, insurance and the intended fit-out.
- The purchase contribution, separate costs and working-capital reserve after completion.
Where the assessment goes next
The next step is a clear owner-occupier proposal supported by business and property information. Tax, legal and accounting structure require separate professional advice. Buying premises is not assumed to be preferable to leasing.
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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