Deal Structure
- 70% Loan to Value (LTV) on Day 1
- Build costs drawn in arrears
- 55% Loan to Gross Development Value (GDV)
- Interest rate: 0.95% per month (rolled up)
- 2% arrangement fee
- No exit fee
- No Quantity Surveyor (QS) required
Deal Summary
Our client agreed to purchase two semi-detached houses in Salford that had been converted into flats during the 1970s.
The properties had fallen into disrepair and required a full refurbishment. The client planned to use his own team of builders to complete the works and bring the apartments up to a modern standard.
As part of the project, the client also intended to separate the flats onto individual leasehold titles. This would provide greater flexibility and make future sales easier if he decided not to retain the apartments as a long-term investment.
Due to the scale of the refurbishment, the client needed finance that would provide strong leverage from day one while also supporting the build costs.
We sourced a specialist development finance solution that provided 70% Loan to Value funding on Day 1. The lender also agreed to reimburse refurbishment costs in arrears, helping the client manage cash flow throughout the project.
The facility was structured at 55% Loan to Gross Development Value, with a competitive interest rate of 0.95% per month and a 2% arrangement fee. The lender did not require a Quantity Surveyor, which helped reduce costs and simplify the process.
Instead, the appointed valuer carried out inspections before each subsequent drawdown. This allowed the lender to monitor progress while providing the client with access to funds as works progressed.
The refurbishment finance package gave our client the flexibility needed to transform the properties into high-quality apartments while maintaining control over the development process.
If you are planning a refurbishment project and require apartment refurbishment finance, Positive Commercial Finance can help source tailored funding solutions based on your project requirements, experience and investment strategy.
