+
CLOSE
+
CLOSE
Register

By submitting this form you confirm that are happy to submit your data, which will be used solely for the purposes of my above enquiry

+
CLOSE
Quick Enquiry

By submitting this form you confirm that are happy to submit your data, which will be used solely for the purposes of my above enquiry

Conversion of ex-Pub to 11 flats in London. 90% of purchase price plus 100% of build costs.

Deal Structure

90% of Purchase Price on Day 1

100% of Build Costs, drawn in arrears

70% Loan to GDV

Interest rate 0.65% per month

Arrangement fee – 2%

Exit fee – 1% of the facility amount

18 months term

Deal Summary

A developer client had identified his next project, which was a well situated former Public House in London. The purchase had been agreed using an Option, subject to planning consent being granted for the conversion to 11 self-contained flats.

Having agreed a purchase price at £875k, our client anticipated the property would be worth more when he would have to complete on the purchase, given the planning uplift. Planning was then granted, and the property was subsequently valued at just over £1m.

Given the client had experience of this type of conversion, he was fortunate to have a good range of options to choose from. His preference was the option which gave him the highest net loan amount towards the acquisition. Whilst this was not his cheapest option, it was still fairly competitive at 0.65% per month, on the drawn sum.

The development finance lender provided 90% of the purchase price, meaning the clients financial input towards the acquisition was very slim. The facility also covered 100% of the build costs, and professional fees.

Contact John Waddicker

07974 703375

john@positivecommercialfinance.co.uk

Follow us on @PositiveComFin
Probably the best Refurbishment Loan https://t.co/sgrlfwBplx https://t.co/mtRfI3gGJO
Sign up to our newsletter
© Copyright 2019 | Positive Commercial Finance