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reFURBISHMENT

Case study 1

Product: First charge residential refurbishment bridge

Security: Various mixed-use buildings in the South East

Gross Loan: £640,000

LTV: 71.89%

Term: 12 months

Borrower Type: UK based development company

Purpose: The loan was used to fund the purchase and refurbishment of one of the underlying assets. 

Exit: Sale of some of the underlying properties

Key points:

• Pivot lent against the current value of the assets, including the one that was to be refurbished.
• It was a condition of the loan that the borrower provided regular updates and photos of the refurbishment.
• Once the refurbishment was complete, the property was revalued and we were able to provide the borrower with additional cash to purchase his next investment.
• The borrower had to provide evidence that the exit route properties were on the market prior to completion.
• Personal guarantees taken from company shareholders
• Debenture taken over the company