What was needed?
Our client in Surbiton needed to re-arrange their finance when they weren’t able to sell 5 apartments and a freehold from a development of 46 residential and 3 commercial units.
Their previous finance arrangement had come to an end and they needed to re-negotiate the finance on the remaining units.
What did we do?
We spoke with the client so that we could understand their previous arrangement, the value of their existing units and how much they needed to borrow in order to complete their previous finance.
It was decided that the most appropriate type of finance would be development exit finance.
The total market value of the unsold properties was £3,200,000 and the client required 75% of the market value in order to clear their previous finance arrangement.
The rate of interest agreed by the client was 0.6% per month.
The client arranged a 12 month lending term, with a view at early repayment if the exit plan was reached before the full term.
The client planned to repay the loan once all of the outstanding properties had been sold.