CBILS Commercial Mortgage

CBILS Commercial Mortgage July 2020

CBILS Commercial Mortgage July 2020


A trading business which had two outlets was approached by their landlord who wanted to sell the freehold to their shop due to pressures caused by Covid-19. The purchase price offered was fair and would allow the client to obtain an asset, obtain control of their premises and remove the pressure of an ever increasing quarterly rent.


The big challenge was that the current business was suffering due to Covid-19 and that the client needed to postpone any new loan repayments, in addition the client needed to reduce the costs of the new mortgage to ensure maximum cash was retained within the trading business.


Using a specialist lender accredited to provide CBILS (Coronavirus business interruption loan scheme) finance as a commercial mortgage we obtained a finance offer using CBILS. This meant that there were no repayments on the mortgage in the first 12 months, in addition all loan costs are paid in this period which meant that the valuation, lender legal costs and arrangement fees were all paid for. The client had no outgoing for any of these costs.

Using CBILS for a commercial mortgage is not well known but the benefits can be significant. We advanced £200k with the case completing in August 2020.