8 April 2022

Jake – 1m plus

SPF Recent Case Studies

£3.5M Regulated Loan for Ground Up Development
Advisor – Jake Manns-Benson
LTV – 50%
Rate – 0.95% Per month
Term – 12 months
Early Repayment Charges – None
SPF Commission:- £70,000
Lender – West One Loans

Scenario
Our client had purchased a house in Cheshire that he wished to redevelop, significantly increase the value of the property which he intended to move into.
Works included converting the property back to a single dwelling from flats, a single story extension, and build of a new dwelling separate to the main house.
The total cost of works was £7.43M and he’d funded works to date from his own cash. He required further funds of £3M, to complete the proposed works so he could remortgage and move into the property.

Challenges
Due to the works including ground up development and an extension, a mainstream mortgage lender would not be able assist due to the extent of the works.
We approached our trusted lending partner to arrange the loan during the pandemic when many bridging lenders had retrenched from the market completely. The majority of lenders who were still continuing to lend had withdrawn their regulated development finance products as the pandemic created severe delays with build projects.

Outcome :
We secured the client a loan of 3M released in 3 tranches, to enable the client to complete the proposed works which included an extension, ground up development, increasing the square footage of the property to 20,000 Sq ft.
The client was able to draw down the loan in stages as required, and only charged interest on the amount drawn down saving him money in interest over the term.
The works increased the value of the property to £15,000,000 leaving him with a significant amount of profit, and the client was able to repay the loan within the term via a residential remortgage with a private Bank.

Bridging Loan For Purchase of Semi Commercial Property
Advisor : Jake Manns Benson
LTV: 70%
Rate : 0.55% Per month
Term : 12 months
Early repayment Charges : Non
SPF Commission: £18,535
Lender : Together Commercial Finance

Scenario
The client was introduced to us as he was purchasing a mixed use property on Ilford High St for £1.27M. The property was configured as retail below, and a residential flat above generating combined annual rental income of £83,140.

Challenges
The client needed to complete on the purchase within 2 weeks as he has a contractual completion date agreed with the vendor, which meant we needed to arrange a full commercial valuation and legals and underwriting within this timeframe.

Outcome:
Working closely with our trusted lender partners, not only we able to secure competitive pricing to rate match another lender, we also delivered within the tight timeframes enabling the client to secure the investment purchase. The interest payments were also retained for the whole term meaning that the client did not have to worry about servicing the interest on the loan, whilst he obtains a long term commercial mortgage.

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