We were approached by property developers looking for short term finance to purchase a two-bed Victorian terrace in North-London in need of complete refurbishment.
The developers are very experienced and have undertaken numerous, much larger transactions in the past but were looking for a quick refurbishment job to keep their regular team of tradesmen busy whilst the next larger development was being finalised.
Their plan was to turn around the property as quickly as possible and sell it on for a profit. The terrace needed a new kitchen and bathroom, full redecoration and an overhaul in the garden.
The developers, who operate their business via a limited company, already had sufficient cash reserves to cover the deposit and the estimated refurbishment costs of £60,000.
We took this deal to Keystone as we knew that they can release funds very quickly and have products within the Short Term Finance Range which have no exit fees which would be of real benefit to the developers – the sooner they finish, the less interest they will pay.
Here are the detail of the deal which was finalised in accordance with the developers’ required timescale.
Property price: £415,000
Loan amount: £290,000
Rate: 0.95% pcm
Term: 12 months
Loan payment: £2,755 pcm
Lender facility fee: 2% (£5,800)
Lender assessment fee: £199
Lender exit fee: Nil
Consultant: Chris Longhurst, 01732 471607