UK Commercial Day Nursery Mortgages

UK Commercial Mortgages for Freehold or Leasehold Day Nurseries

Our commercial property mortgage consultants all have backgrounds in the banking sector and can offer added experience and advice to clients in respect of structuring commercial property deals such as commercial mortgages for Day Nurseries of any size.

Acceptable security

Almost all commercial property is acceptable, this includes:

  • Freehold Day Nurseries
  • Leasehold Day Nurseries but Freehold collateral security required.

Day Nursery Commercial Mortgage Application

We have access to a wide range of commercial mortgage lenders, with some offering Adverse Credit Commercial Mortgages enabling us to match the client’s UK Commercial Mortgage requirements to the most appropriate lender. At Sterling Capital Reserve, we are able to source a wide range of innovative and competitive commercial property finance packages, secured against investment property, factories and offices, warehousing and storage, hotels, pubs and restaurants, care homes and professional practices. The financial information that we will need to support a mortgage application is as follows:

The financial information that we will need to support a mortgage application is as follows:

  • Last 3 years Audited Accounts
  • Latest Management Figures
  • Profit & Loss Forecast for next 12 months
  • OFSTED Report
  • Last 6 months business bank statements
  • Brief CV/profiles of partners/directors
  • Asset/liability statements of applicants

Case Study 1 - Sure Steps Day Nursery

John and Ann Miller are the owners of the already successful Sure Steps Day Nursery in Mossley Hill, Liverpool and are passionate about providing excellent value for money and high standards of care to local children.  They enjoy an excellent reputation in the area and wanted to add a new Nursery to expand their business interests.

Minders Day Nursery in Derby Lane, Stoneycroft, Liverpool was pursued as a suitable investment and a purchase price was negotiated with the Vendor.

To raise the funding for the purchase, the Millers’ wished to use a combination of their pension fund and equity against the Business Market Value of Sure Steps  incorporating the combined value of the property and the business.   As the property was in the Millers’ name and the business a limited company this provided lenders with a challenge as some lenders were only prepared to only lend against the property value. John Miller approached Andrew Hunt at Sterling Capital Reserve Limited, who run Day Nursery Funding to find other Lenders who would extend loans secured against the combined value.   Out of the lenders offered, the selected Bank  had a representative in the Liverpool area with past experience in lending to Day Nurseries. They offered 75% LTV against the existing business as well as a mortgage for the SIPP.
 
The funding was agreed and the transaction completed with Sure Steps Derby Lane being added to their portfolio of business interests

John and Ann said “Andrew was very helpful in securing the funding required at a competitive market rate. We used our pension SIPP fund to complete part of the transaction and with Andrew’s help we were offered choices to enable what seemed a complex transaction to be effected very smoothly. I would recommend Sterling capital to anyone looking to secure funding in this sector”.

Case Study 2 - Strawberry How Day Nursery

Former Primary School teaching professionals Bill and Julie Richardson not only made a career change but moved to the opposite side of the UK to acquire the Strawberry How Nursery School.  Moving from their native Stockton on Tees to Cockermouth in Cumbria was required to achieve their goal of running a now highly rated Day Nursery.

With the help of an excellent Business Plan prepared by Bill and Julie, Day Nursery Funding was able to secure a 60% Loan to Value Commercial Mortgage through a High Street Bank.  Andrew Hunt of Day Nursery Funding managed the deal from initial enquiry through to completion, liaising with Solicitors, Accountants, Valuers and the Bank as required to ensure the deal went through.

Bill said “We approached several banks during a time when trying to raise funds for a new business venture was virtually impossible. We felt the best move for us was to contact a financial consultant and we were very fortunate to find Andrew Hunt at Sterling Capital Reserve Ltd. He supported and guided us through the whole process and without his expertise and professionalism the deal would certainly not have gone through.”

Case Study 3 - Penrhiw Day Nursery

Rachel Thompson Williams and her husband Jason own and run the successful and well renowned Penrhiw Children’s Day Nursery in Gwent.  They wanted to duplicate this success and provide much needed additional nursery places in nearby Abercarn in Caerphilly.  They secured Leasehold premises for the new venture, obtained planning permission and were looking for an initial registration of 55 children.

To fund the fitting out of the new nursery a remortgage of the existing freehold nursery was obtained by Day Nursery Funding through a High Street Lender.  With the release of the monies the fitting out is almost complete and the new Nursery expects to open in April 2012.

Rachel said: “The professional knowledge and assistance of sterling capital reserve has been invaluable to us as expanding nursery providers. We have gained expert advice and solutions to a growing problem of raising finances in the current economic climate.”

All cases are supported by professionally prepared credit applications, thereby significantly enhancing the chances of our clients securing the optimum financial package. Unlike some of our competitors, we do not believe in up front charges. Our fees are only payable when our client has received a formal offer of finance.