Our products are structured to give your clients the flexibility they need. Here’s an example of how:
The client:
The clients were coming to the end of a development loan for the conversion and refurbishment of large office block in the Midlands, creating 50 residential units.
The situation:
With the time to refinance fast approaching, the clients were keen to come off of the expensive development funding and on to a refinance package covering the £9m loan that is flexible and competitive on rate. The clients were looking for a 40/10 split on the 50 flats whereby they wanted to keep the majority and find buyers for the rest.
The solution:
We were able to offer the clients a hybrid development exit package of 75% gross LTV combining our TermTen and Bridge to Let products. TermTen was used for the 40 flats that were being retained with a 5 year fixed rate of 4.59%, on the condition that 60% were let pre-completion of the loan. The other 10 flats were funded by a 9-month Bridge to Let loan with rolled up interest of 0.67% pcm. This hybrid solution gives surety of a serviceable Buy to Let loan whilst also affording the clients flexibility to sell units and deleverage their position, eventually creating some cash profits once the 10 flats are sold.
Have a case to discuss?
Give us a call or contact your BDM today to see how we can help you.