75% LTV Developer Exit bridge for mixed-use scheme

Deal Structure

75% Loan to Value.

£599,500 loan facility.

Interest Rate 0.84% pcm, with interest retained

1.5% Arrangement Fee

No Exit Fees

12 months term

Deal Summary

We were approached by a property investor who had turned his hand to development on his latest project which included ground floor commercial space and residential uppers. The property was purchased with Vacant Possession and the client then achieved planning consent to convert the upper floors to x 3 flats whilst keeping the ground-floor commercial element “as is”.

He had previously secured a Refurb/ Renovation bridge to acquire the property and to provide the Cost of Works in arrears, however the programme was delayed rather significantly due to a poor choice of Main Contractor. Despite the challenges the client faced, the works were “almost complete” when he approached us, but the delays meant he faced default interest charges & fees from the incumbent lender.

He needed to refinance at 75% LTV on to a Developer Exit-type Bridge but with a lender who was OK with the fact that some works still needed to be carried out. The bigger challenge however was the leverage required given it was a mixed-use property.

Whilst the proposed value of the flats was accepted as being sensible, the vacant ground-floor commercial element was the concern for most lenders.

This case therefore required a boutique lender based locally to the site, who was very familiar with the area and as such had much more confidence in the demand for the commercial element than a 3^rd party valuer would support.

We engaged with a lender whose regional office was 15 minutes’ drive away, who took the time to visit the site to fully understand the property & meet the client. The lender came away satisfied and committed to a loan at 75% LTV which completed 4 weeks later.

Contact John Waddicker

07974 703375

[email protected]