Financing a Multi-Let Commercial Investment in Stafford

The Scenario

Our client was acquiring a multi-let commercial investment in Stafford, a well-located asset with strong demand for flexible workspace and excellent access to key transport links, including the M6 (J14).

The property comprised 31,466 sq ft and generated £180,262 per annum from 19 occupiers, producing a net initial yield of 13.35% based on the agreed purchase price.

Key figures:

• Purchase price: £1,350,000

• Loan required: £810,000

• Loan to value: 60%

• Repayment basis: Interest only

The Challenge

This was not a “standard” commercial investment, and it required careful lender selection and detailed packaging due to several non-standard features:

1. Tenancy structure – a blend of 2 FRI industrial leases and 17 business centre licences (rather than solely contracted commercial leases)

2. Income concentration – the borrower’s personal income was derived solely from three commercial properties, meaning lender appetite and narrative mattered

3. Multi-let complexity – 19 separate income streams across a sizeable floor area, requiring a robust explanation of management and stability

Our Approach

Rather than leading with what could be perceived as complexity, we positioned the transaction around the strengths that mattered to commercial underwriters:

• Diversified income – no single occupier contributed more than 20% of total rent

• Proven management track record – extremely low historic vacancy, demonstrating strong operational control

• Strong fundamentals – elements of below-market rent, creating a clear reversionary opportunity through renewals and re-letting

• Strategic location – established commercial demand and practical accessibility for occupiers

We then matched the case to a lender comfortable with multi-let commercial investments and experienced with licence-style occupancy, ensuring the underwriting team could see the asset clearly rather than forcing it into a rigid policy box.

The Outcome

We secured competitive interest-only funding at 60% loan to value (£810,000) with a specialist commercial lender who understood the asset class, the income profile, and the tenancy mechanics.

Every complex deal has a solution. It comes down to finding the right partner and telling the right story.

Conclusion

Multi-let commercial investments can appear daunting on paper (particularly when tenancy structures deviate from the norm). but with the right positioning and lender selection, they're entirely financeable.

This transaction demonstrates the value of understanding an asset's strengths and matching it to a lender who can see beyond headline complexity. The difference between a declined application and competitive terms often comes down to presentation, narrative, and broker experience.

If you're acquiring (or refinancing) a commercial property with multiple tenants, unusual lease structures, or non-standard features, we'd be happy to discuss how we can help structure and place your case.