Loan of The Month – Sep 21

This month seems to be all about milestones, as we reach the 13th loan with this borrower! They required funds to purchase a mixed-commercial property and an adjacent site with land. The development potential was great, with intention to change the use to ground-floor commercial units, 6 self-contained apartments and 3 holiday lets on the adjacent land site.

This was one of our most complicated build structures yet, and as such our history with the borrower and understanding of their experience really provided us with the ability to provide the finance sought for both purchase and development, going up to 65% LTV.

Our commercial-to-residential ratio still favours the latter, but as mentioned we are always open to discussing the ways in which we can help finance your projects, whether of a mixed-commercial nature or not. This loan was no different. As the loan incorporated several varying securities and periodic tenancies, we were proactive in ensuring this didn’t delay the Legals process as a completion date for purchase had been confirmed. Working on both sides to ensure our risk was covered legally, as well as meeting our borrowers requirements, can become complex with a loan and security of this size, but we worked hard and were so happy to get this over the line. With several other projects already in the pipeline with this borrower, we can’t wait to continue such a great business relationship!