The nursery had operated successfully for 14 years with two married couples making up the partnership of four. They had built the nursery up to a registration of 70 but as they were turning away children due to lack of space the younger of the two couples wished to fully exploit the potential to expand the business by extending the premises and incorporating their own house into the nursery. This would allow them to increase the registration to 105.
The older couple decided that they would rather retire than go through the stress of further expansion. It was thus agreed that the younger couple would buy out the others and so needed to raise funds to effect the buyout and pay themselves for their own property.
Here are the details of the deal:
Property value: £1.99m (after conversion works)
Loan amount: £1.35m
Rate: Bank Rate + 2.5%
Term: 20 years capital and interest repayment
Arrangement fee: 2%
Completion date: Est. November 2014
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