Case Study: A fast and flexible approach to a BMV opportunity.
- Emily Jackson
- 12 hours ago
- 1 min read
The Deal
An experienced property investor, who had previously worked with Somo, wanted to purchase a mixed-use commercial property in the Midlands, at a significant discount to its Open Market Value following a period of under-management by the previous owner. The asset comprised ground-floor commercial space with a 2-bedroom flat above, and the investor’s strategy was to improve occupancy, carry out light refurbishment works and stabilise the income, before refinancing onto a longer-term commercial facility.
The seller required a fast completion, making traditional bank funding unsuitable, whilst avoiding tying up capital, which was earmarked for works and professional fees
The Outcome
Somo provided a Below Market Value loan assessed against the property’s Open Market Value, enabling funding of up to 100% of the purchase price. The loan completed within the required timeframe, allowing the investor to secure the discounted asset, retain capital for refurbishment and allow themselves plenty of time to arrange refinance.
