Case Study – £1.3m Holiday Let Development Finance – Sussex
5-STAR RATED AWARD-WINNING MORTGAGE BROKER ⭑⭑⭑⭑⭑
Having spotted a unique investment opportunity in a sought-after location in Sussex, our property entrepreneur clients were in need of specialist bridging finance guidance to help them secure the finance they needed quickly to beat stiff competition.
Looking to purchase the 5-bedroom residential home which showed great potential as a holiday let investment, the clients not only needed to secure the funding to acquire the property but also planned to raise additional capital to carry out extensive renovation work to increase the property’s potential yield.
Although the clients’ main vocations were in both architectural and financial sectors, plus they already had an existing buy to let portfolio in a limited company structure, this would be their first bridging loan, so they wanted to enlist the help of a specialist to ensure they got the right funding to support their short term refurbishment plans.
A quick Google search brought them to The Buy to Let Broker and Steve was the specialist to help with the pursuit.
Having drawn a lot of interest from other bidders, the clients needed to move quickly. Additional time pressures were added as the clients hoped to complete the transaction before the Stamp Duty Holiday window closed, to further reduce the costs of the project.
Adding to the complexity, with an estimated GDV (Gross Development Value) of £2 million, the clients were looking to raise in the region of £1.3 million for both the acquisition and renovation. Obviously looking to secure the most advantageous interest rate to maximise their investment, trying to secure bridging finance on a holiday let meant there were only a handful of specialist lenders that would consider the proposition.
With a plethora of senior lender contacts to draw from and years of experience of dealing with complex cases of this caliber, Steve was confident he could deliver for the clients, even in the face of all the complexities the case presented.
After discussing all the clients’ needs and requirements in detail, as well as taking the time to understand the clients’ background property portfolio, Steve put his extensive experience to work, approaching several lenders to personally discuss all of the merits of the case.
Leveraging all of his contacts and looking for a lender that could deliver the attention and customer service that the case deserved, specialist lender United Trust Bank (UTB) agreed to finance the project, and Steve managed to negotiate the highest loan to GDV possible for the clients, as well as the most competitive terms by a considerable margin.
Offering a 2-stage funding facility with an initial £650,000 for the acquisition and then further funding to cover 100% of the build costs was agreed in-principal, which would be released once the relevant planning permissions had been secured. The second funding facility would also come with an additional 12 months in which the client could complete the refurbishment work to the property, giving them greater flexibility during the development.
Quick to react, Steve’s proactive and diligent approach meant that the clients were able to secure the property on a very competitive rate, as well as receive the further funding to support the development of the property into a high standard holiday let with flexible terms to suit their project. Also Steve’s initiative solution meant the clients could acquire funding which would not duplicate arrangement fees on previously borrowed funds or require the need to switch lenders post planning being granted.
Unfazed by a tight deadline, Steve worked with all parties involved in the process to ensure that the clients were able to meet the Stamp Duty Holiday cut-off, subsequently saving the clients over £13,000.
We’re pleased to say the renovation work on the property is now complete and the clients are able to take full advantage of their investment, renting out the property as a luxury holiday let.
Discover why so many landlords choose us
If this sounds similar to your own portfolio needs and you want to discuss your investment with an expert, call us today on 08009499410. If you are in a hurry, you can also request a callback by entering your details here.
Any property used as a security may be repossessed if you do not keep up with repayments on your mortgage.