Refinancing to change the use of a property

Loan Amount:
£385,000

Property Value:
£9,420,000

LTV:
66%

Conversion projects can be difficult to get off the ground where there’s also existing financial obligations. A client approached us for finance that would be used both for refurbishment work, along with covering existing charges.

To make sure all final bills would be covered effectively, our underwriter went through the details thoroughly. We not only made sure we were on top of what was owed to external third parties, but we also combed through building works.

We also confirmed that this kind of investment strategy matched the client’s background.

Working with the client’s builders

The client planned to convert one property into multiple ones, with the long-term goal of renting them out. As the project was set to be substantial, our underwriter focused on the schedule of works needed.

This schedule confirmed exactly how our funding would be split by task. What’s more, we worked with the client to clearly understand how our remaining funds would be used.

What’s more, we saw that planning permission had been granted for the work, that the borrower had a lot of experience in this field, and the valuer confirmed the investment’s potential. As such we delivered funding for the project, as well as the outstanding balances.

We can move as quickly as investors can

Refurbishment, conversion, development plans and the like are set to come to the forefront over the coming months and years. Both the Conservatives and Labour unveiled plans to ramp up their building efforts ahead of a looming general election.

These efforts may incentivise developers and property investors to act. Especially considering how much underutilised space there is in the UK.

Fortunately, should we see a rapid uptick in activity, we’ll be ready to respond. Even in busier times, we can have funding issued in as little as 3 days. We’re there for property investors who want to jump on any opportunity they come across.