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Purchase of Modern Factory Unit

Updated: 19th January 2007 (PM)

For: Purchase of new industrial unit
Location: Northampton
Amount: �210,000

Our client had been in rented accommodation but with a rent review looming was looking to buy his own freehold unit.

The client had sufficient funds in his Personal Pension Plan to enable us to arrange a mortgage to the Trustees of the Pension Fund. A lease was then created to the client's trading business, with the rent charge covering the mortgage repayment.

This was a very tax efficient way of purchasing the property.

Sterling arranged a mortgage of �210,000 (70% of purchase price) over 15 years, at bank base rate plus margin 2%.