Refinance of 2 Commercial Units converted to Holiday lets in Devon

Deal Structure

75% Loan to Value

£600k loan

Interest Rate fixed for 5 years @ 6.56%

1% Arrangement Fee

10 years Interest Only

Deal Summary

Our client purchased two vacant retail units in Devon utilising bridging finance which we sourced for them.

After getting the relevant planning permissions, our client went about redeveloping the units into two Holiday Lets as the demand for this type of accommodation in the area was very high and the rental income a Holiday Let could produce was way in excess of a standard AST agreement.

Once the work was nearing completion, they approached us to look at their refinance options.

We have access to a number of specialist Holiday Let lenders who understand this market and can use the income the property should generate rather than relying on the value of the AST equivalent when calculating the loan serviceability.

The extra rental income generated by the Holiday Let meant the lender provide 75% LTV rather than the 60% LTV an equivalent AST/ Buy to Let product would have achieved.

The client opted for an Interest Only fixed rate option that enabled them to repay the outstanding bridging loan whilst also providing surplus funds to be used as cashflow for their next project.

Contact Simon Parkinson

07503 722 838

[email protected]