We were approached by a longstanding client, a full-time property investor with a portfolio of eight properties.
He was looking for short term finance to help purchase a two-bed house in London in need of total refurbishment.
His plan was to add an extension and convert the loft, all of which could be completed within existing permitted development rights.
In addition to deposit funds, he had £70k cash to put towards the work and as an exit strategy he planned to sell the property on.
This project was very similar to several others completed by the developer, so we knew that it would fit the criteria of the lender, which had lent to the client on previous occasions.
As anticipated, the loan application was processed without a hitch and the following terms were agreed.
Property value, pre-works: £503,000
Projected property value, post-works: £750,000
Loan amount: £350,000
Rate: 0.85% pcm
Term: 8 months
Lender facility fee: 2%
Lender exit fee: Nil
Loan payment: £ 2,975 pcm