Case Study – £1.46m Development Refinance – Ealing
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After using development finance to acquire an attractive land proposition in the bustling Ealing area, our property developer clients successfully built three adjacent terraced properties on a single title.
Now individually valued at £975k each, the clients were looking for refinance options in order to repay the initial development loan.
Looking for the most competitive deal for their limited company structure and with several complexities to their requirements, they sought expert financial advice and approached The Buy to Let Broker having discovered our services online.
Having helped countless property investors with complex development needs and portfolios of a similar caliber, buy to let and bridging specialist Tom Headey was the adviser for the challenge.
When originally acquiring the land, due to the historically complex structure of the clients’ SPV (special purpose vehicle), the initial finance had only been secured against one of the shareholders’ names, with the other signing a silent partner agreement.
This had been done for speed as the clients needed to move quickly to secure the sought-after plot. But this decision was now causing additional hurdles for the clients as the fund for the deposit had come from a limited company with each shareholder now holding a 50% stake, thus restricting the number of lenders that would consider the application.
Adding to the legal complexity of the case, the clients intended to split the single title into three separate titles to maximise their investment – with one being sold to a third party with a new title, one being transferred to a new holding company of the clients, creating an inter-company loan for this purchase, and the third was to remain on the existing title and be remortgaged.
With a plethora of factors to consider and having taken the time to discuss the intrinsic details of the situation with the clients, Tom wasted no time in using his industry relationships and development experience to pinpoint a suitable lender.
Well versed in development finance criteria and having built relationships with key contacts across the buy to let and bridging sector, Tom quickly pinpointed several key lenders that would consider the clients’ unique proposition and even personally discussed the clients’ case with senior decision makers within the lenders to speed up the pre-submission process.
Having presented such a strong case and comprehensive notes, specialist lender Landbay agreed to facilitate the funding required with the most competitive rate and terms for the finance needed for two of out the three properties.
Determined to help his clients in every way possible, whilst alleviating as much friction in the process, Tom worked as the conduit between Landbay’s legal team and the clients’ solicitors to ensure that all necessary documentation and information was provided to avoid any unnecessary delays after the complex splitting of the title deeds was achieved.
Working tirelessly to remove barriers and deliver a competitive funding solution, Tom was successfully able to secure the finance facility needed for two of the properties, alongside the sale of the third, providing the clients with over £1.46 million in capital to repay their initial development loan and the cashflow to get the ball rolling on their next exciting project.
Offering more than just industry know-how, Tom’s dedication to the case and tenacity when it came to matching the deal to the right lender meant the clients secured a better than expected rate with flexible terms to suit their long-term property investment strategy.
Thoroughly impressed with both his delivery and service, the clients have now rented out the two properties to generate further income that will support their ongoing portfolio expansion.
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