Borrowing against a commercial property to buy another
Discussion
Just bought a small industrial unit - currently empty, no immediate plans for it. Owned outright (small ltd co for this purpose, VAT registered as qualifying). Chunky director's loan from me.
I'd like to also buy next door - where a different company are tenants - I run this business (but don't own it). The occupied unit is in poorer condition, but is fine for its use.
Can I borrow against the nicer building to buy next door? Possibly one of those opco propco things, but the loan would be against a different building. To get the occupied unit 'survey ready' might be a pain. The company would remain tenants (long established, robust company) and just pay me rent. Landlord is selling up as each lease ends - inherited the business from family and no interest to continue. Lease until the end of 2027 but I'd like to get it over the line in case developers come knocking - she has agreed to an early lease surrender if this happens.
I'd like to also buy next door - where a different company are tenants - I run this business (but don't own it). The occupied unit is in poorer condition, but is fine for its use.
Can I borrow against the nicer building to buy next door? Possibly one of those opco propco things, but the loan would be against a different building. To get the occupied unit 'survey ready' might be a pain. The company would remain tenants (long established, robust company) and just pay me rent. Landlord is selling up as each lease ends - inherited the business from family and no interest to continue. Lease until the end of 2027 but I'd like to get it over the line in case developers come knocking - she has agreed to an early lease surrender if this happens.
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