Refinance of 9 unit Assisted Living property

Deal Structure

60% LTV

Interest Rate Base + 2.83%

1.5% Arrangement Fee

20 years term

Capital and Interest

Deal Summary

Our Client purchased a vacant block of 6 apartments earlier this year for £400k using a Bridging Loan. They then spent around £70k of their own cash on modifying the units so they could be used for Assisted Living.

They then agreed a 10 year lease with a blue chip Housing Association, with no break clauses.

With the benefit of the refurbishment alongside the strong counterparty to the commercial lease the property valued up at £900k. The clients wanted to refinance the property on to a long-term loan, repay the bridging finance and release some of the equity from the enhanced value to re-invest into anotherproperty.

After an initial assessment, we presented to some lenders who we knew would have appetite for the Assisted Living model/ sector and were able to provide three different options to the clients.

The client opted for a loan of £540k over 20 years with a rate of Base + 2.83% with a 1.5% Arrangement fee added.

Contact Simon Parkinson

07775 671 680

[email protected]