An experienced property developer required a bridging loan to secure the purchase of a mixed-use property in Shrewsbury, with full planning in place to convert the upper floors to residential, which they will fund themselves.
The property, situated on a prime location on the local high street, will be converted into 1x two-bedroom and 3x one-bedroom flats, while retaining the ground floor as a commercial unit, with a GDV of just over £800k.
Challenges
- The borrower wanted to self-fund the refurbishment, with costs estimated at around £300k.
- The borrower did not have the funds to start the works at completion, as they were waiting on money to come in from a refinance.
- The building is Grade II listed, and the borrower had no previous experience working with listed buildings.
Solutions
- The works will be closely monitored throughout the term to ensure they are completed in line with building regulations and within the agreed timeframe.
- We structured the facility to cover the purchase only, with an agreement that no works would commence until the refinance was completed and funds were available.
- The borrower appointed an architect with experience in listed buildings to help navigate the planning and regulatory requirements.
The Outcome
We provided a £255k facility at 70% LTV over a 15-month term. The borrower is now in a position to move forward with the refurbishment once funds are released. With a GDV of £810,000, the project is well-positioned for success and we look forward to seeing it come to life.
A word from our team
Yet another case highlighting our willingness to genuinely accommodate the borrower's needs, work towards a targeted completion date and take a common-sense approach!
Michael Barclay Smith - Relationship Manager
