“We were pleased to support the customers on this project and structure a competitive facility allowing them to transform the property, develop its full potential and maximise their investment”
– Gary Lomax – United Trust Bank Bridging
United Trust Bank Bridging has announced that it has completed a £1.2m unregulated heavy refurbishment loan to support a customer’s acquisition and renovation of a residential property in Berkhamsted, Hertfordshire.
The facility comprised an initial loan of £760,000, at a day one LTV of just under 65%, to enable the customer to complete the purchase.
Three additional tranches totalling £250,000 will finance the refurbishment works and the interest will be rolled up for the term of the loan. The borrower, an experienced construction company, secured the property at below-market value after a previously agreed sale fell through. They subsequently negotiated directly with the vendor to agree on a price subject to a quick sale and completion.
The facility enables the borrower to complete a full refurbishment of the property including demolishing and rebuilding the garage, installing new windows, overhauling the roof, updating plumbing and electrics, full interior refurbishment and redecoration, and landscaping.
The facility is being secured against two properties: the target property and a third-party second charge over one of the business principal’s main residence. The works will be completed by the borrower and the exit will be provided by the sale of the improved property which should have an estimated GDV of £1.6m and LTGDV of c61% once works are complete.
“We were pleased to support the customers on this project and structure a competitive facility allowing them to transform the property, develop its full potential and maximise their investment,” commented Gary Lomax (pictured), Key Account Manager – Bridging, United Trust Bank, “Given their considerable expertise in construction, we are confident our customers will deliver an exceptional end product and achieve a successful and profitable sale.
“UTB is committed to supporting experienced and inexperienced property developers with bespoke bridging solutions designed to help them seize opportunities and create outstanding homes.”
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