What was needed?
Our client was looking to purchase an office block that they intended to convert into 40 apartments, with the client also gaining planning permission for an extra floor with an additional 10 apartments.
The client needed capital to be able to complete the purchase, and needed it in the short term to be able to complete the purchase and the development of the building.
What did we do?
We sat down and spoke with the client to understand what they needed., how long over and what it was needed for. After understanding the project in more detail it was decided that development finance was the most appropriate type of loan to seek in the short term.
The total amount borrowed was £2,799,922 which represented 53% of the total market value of the property of £5,300,000.
Because the LTV was relatively low, the rate was 0.75% per month, charged over the 6 month term of the loan.
The client needed to borrow the money over a period of 6 months to be able to complete the purchase and then the renovations.
Once the project was completed the client re-arranged their finance and agreed something longer term.