An experienced property developer and landlord.
A large house in a Devon seaside town with planning permission to convert it into four holiday flats.
The developer had already arranged some finance with a lender to enable him to start the project but required further funds in order to finish it. He had found a mezzanine funder that was willing to help but as the cost of this facility severely eroded his profit margin he approached me to see if I could find a more cost effective solution.
I suggested he raise a second charge mortgage on a buy to let property he owned (not the Devon house). This property already had a modest BTL mortgage on it with a very low historic Standard Variable Rate, and it made more sense to raise the second charge than remortgage. The second charge was considerably cheaper than the mezzanine finance he had found.
Property value (of the buy to let property): £1,400,000
Existing mortgage: £538,000
Second charge mortgage: £165,000
Rate: 1.25% pcm
Term: 18 months
Arrangement fee: 3%
Completion date: July 2014
This is just one example of how I've helped a client secure property development finance. To see more of my case studies please visit my profile page. And if you have any funding requirements, please do not hesitate to contact me. My direct line and email address can be found below.