Project completed: January 2020
(14 days from enquiry to completion)
The Client:
An experienced developer was
seeking fast access to funding, to secure the purchase of a residential
property. This client had an impressive portfolio of successful
residential and HMO buy-to-let properties.
The Property:
Located in a densely populated
student area of Liverpool, the property was in poor condition. Development loan funds were
needed to enable them to deliver on their plans - convert the property to an impressive HMO.
The Challenge:
With the sale agreed, the
developer needed to secure cash to complete the purchase. They also required
additional money to undertake a medium scale refurbishment, in order to convert
the property from 3-beds to a 6 bedroom student accommodation. The borrower was
looking to finish the project within 6 months and then refinance on to a
buy-to-let mortgage.
The Solution:
Given the track record of the developer,
Mint Bridging was able to provide a net advance for the purchase, and offered
additional £90,000 to meet the development costs. The development tranche
included a 10% contingency. The term of the loan was 12 months with
planned development draw downs, including sufficient time within the term for
the developer to arrange their exit.
The Outcome:
The purchase of the property
went according to plan with works completed on time. Fortunately, there was no
need for the contingency funds. The developer has now refinanced the
property and the rooms are listed For-Let. It’s generating much interest
already.
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