Commercial Development Funding Scenario 1
Our client situated in South West London looking to purchase a mixed use commercial building in Fulham with a retail unit on the ground and basement floors and two self contained flats above for £1.15m the building was in a poor state of repair but had the benefit of planning consent to change the ground and basement level to residential use, we were able to cross securitise against the clients main residence to 65% loan to value with a second charge security and a first charge against the purchase property to 70% loan to value to raise the full asking price at a rate of .99% per month for an 18 month period, the client contribution was the £350,000 build costs, the finished project provided 3 refurbished units, a two bedroom split level ground and basement apartment, a first floor one bedroom apartment and a second floor/roof conversion split level 2 bedroom penthouse with an overall gross development value of £2,1m.
Commercial Development Funding Scenario 2
The clients needed funds to purchase a plot being used as a car showroom in Colindale NW London valued at £2.2 m.. the plot had planning for 3 commercial units on the ground floor 3 x 1 bed flats and 6 x 2 bed flats over three further levels, the finished project had a gross development value of £5m, the build costs where £1.4m the clients had £1m of there own funds to put into the development via a special purchase vehicle company with directors guarantees, they were looking for 60% of purchase price and further funding released in tranches throughout the build, the exit strategy being commercial finance on completion of the build, we were able to arrange funding through our lending partners for 60% of the site value with a further 60% of the gross development value released in stages throughout the build at a rate of 6.8% per annum, with a 2% arrangement fee and 1.5% exit fee based on the loan facility. The client were very happy with these arrangements as they had been quoted a similar rate with a far higher exit fee of 2% of the gross development value by an alternative lender.
Commercial Development Funding Scenario 3
Our client needed raise funds quickly towards his share of a development site purchase in Walthamstow, the funds are for business purposes to build a residential block which has an option to purchase, if the project proceeds he will be able to repay the loan from the profit, he also owns a buy to let house in the same area which is valued at £450,000 with an existing mortgage balance of £213,000, the client needed to release £100,000 as a second charge, we were able to obtain a rate of 6% per annum for 36 months with no monthly repayments and no exit fees after the initial 24 months allowing him time to re-finance of repay the funds in year three without penalty. This is a non regulated business purpose loan which could have been secured as a first or second charge on the clients buy to let property or a second charge on his main residence subject to available equity.
