Case Study – 18 Flats
Client’s requirements: –
Our client built 50 units in Newquay utilising development finance from a high street lender. The facility had come to the end of its term and lender was insistent that the facility was to be repaid or the client to would have to pay a much higher non-market leading rate.
After developing the units, the client kept hold of 18 (all on one freehold). This was immediately an exposure issue, as far as most lenders were concerned. The other challenging aspect of the deal was that the development was in Cornwall.
Complete Mortgages’ solution: –
A member of our team managed to negotiate the funding with one of our extensive panel of commercial loan providers and visited them personally in Truro. The added benefit of this lender was that they had local knowledge of the development and this assisted with the deal.
Finance agreed: –
- Loan of £1,300,000
- 15 year term
- Lender’s arrangement fee of 1.00%
- Rate of LIBOR + 3.00%
This mortgage completed one week before the long stop date issued by client’s current lender.