£1.4 million Loan Sourced for Commercial Office Revamp into Residential Apartments
What was the challenge?
Our bridging financeteam recently sourced a £1,435,000 bridging loan for a commercial office block in Birmingham. The property had several tenants, but the client wanted to develop the block into 32 residential apartments.
This client directly approached us as they needed a bridging loan to raise the maximum possible to put towards the purchase of the property. Although the commercial block was valued at £2.05 million our client managed to negotiate a discounted purchase price of £1.6mil if the short deadline was met and our team was able to source 90% LTV for this property.
What were the client’s objectives?
The client was seeking a bridging loan to cover the cost of purchasing the commercial office block, so he could later convert it into a residential property.
What solutions did we offer?
We were able to rapidly find a lender to provide them with a bridging loan of 90% LTV with a 9-month bridging plan in place to give them enough time to get planning permissions to be able to convert this property into a residential property type.
After the planning is in place, our team will help this client switch to a development finance product to complete the conversion. Then the client will be left with the option to retain the apartments and our commercial mortgage team will work with him to change the loan to a commercial or buy-to-let product.
How did we ensure success?
Due to our strong long-term relationships with a broad range of lenders, we were easily able to find the most suitable financial solution to meet the client’s requirements.
Our Head of Bridging and our expert bridging finance team were able to turn this around quickly, so our client purchased the site. Our team also continuously maintained excellent communication with the client, answering all our client’s queries with speed and professionalism.
· A loan of £1,435,000 was sourced for a semi-commercial property in Birmingham. · 90% LTV sourced with a 9-month bridging plan · The swift delivery meant that our client was able to buy the site on time.