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Repayment of development finance pending property sale

 

Lender – Hampshire Trust Bank

Client – Experienced Developer / Landlord

Loan Amount: £770,000 refurb

Interest Rate: 0.75% pcm

Full interest roll up – Term – 10 months

Experienced property development company had recently completed the development of a 2 bed town house in Highgate, London with funding obtained from a specialist residential property development funder at an interest rate of 1.50% per month.

The loan amount requested was £800K, 64% LTV against the anticipated valuation figure of £1.250M. In the event the valuation came in at £1.100M and Hampshire Trust agreed to lend 70% LTV i.e. £770K which was sufficient to repay the development funder with a monthly interest rate of 0.75% producing saving to the client of £5,775 per month.

The term of the facility was 10 months with full interest roll up over the term which considerably assisted cash flow. The client did achieve a sale at £1.125M and the property was sold and the loan repaid within the term.

We do see many situations like this often where property developers become locked into fairly expensive development funding and want to free up cash on completion of the development

The client was delighted to secure this facility at half the cost of his existing development funding whilst also providing him with additional time to achieve a property sale at an attractive price.

Experienced borrowers who spot refurbishment opportunities, secure planning prior to acquisition and create value by reconfiguring the property to a high standard.

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If we can help you with Refinancing a Heavy Refurbishment call us on 01423 524 559 or fill in our contact form.

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Harrogate
North Yorkshire
HG1 4ST
Tel: 01423 524 559

Newsource Commercial Finance Limited (NCFL) is registered in England & Wales No. 08374586 Registered office: 12 Granby Road, Harrogate, North Yorkshire, HG1 4ST - Data Protection registration No. Z3536079 / NCFL is authorised and regulated by the Finance Conduct Authority (FCA): No. 718948. Some transactions are not regulated by the FCA

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