Let's discuss your requirements
The UK’s Elite Property Finance Master Broker
CARE HOME CONVERSION
LENDER – SHAWBROOK BANK
Loan Amount – £900,000
Interest Rate – 4.54% pcm
REFINANCE OF A CONVERTED FORMER CARE HOME INTO A 21 UNIT INVESTMENT PROPERTY, PROVIDING PREDOMINANTLY SERVICED ACCOMMODATION
Clients are well established and very experienced property investors with a history of undertaking previous property conversions of a similar nature.
The subject property is a 1930’s tudor fronted property previously used as a care home with 19 letting rooms.
These clients acquired the property for £450K in 2020 and set about converting it in 2021 into an 11 bed HMO with three studio apartments and 7 serviced residential units at a total cost of £300K.
We were approached to acquire term funding on the completed converted property which was valued at £1.200M. We secured 75% LTV funding of £900K via Shawbrook on a ten year term loan, with a 5 year fixed rate of 4.54%.
The clients were delighted with the outcome because this refinance provided them with the additional capital for them to embark on further projects..
The deal completed in February 2022 and was the first part of an ongoing programme of moving assets from personal names into a limited company SPV, thereby considerably reducing the borrowers’ tax liability.
As part of this exercise the borrowers raised £400K to put towards the deposit on further planned HMO acquisitions.
Request a callback
Newsource Commercial Finance Limited (NCFL) is registered in England & Wales No. 08374586 Registered office: Suite 2, One Cardale Park, Beckwith Head Road, Harrogate, North Yorkshire, HG3 1RY - Data Protection registration No. Z3536079 / NCFL is authorised and regulated by the Financial Conduct Authority (FCA): No. 718948. Some transactions are not regulated by the FCA
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Copyright 2021 newsource commercial finance Ltd