Objective
This client was looking to purchase a property to totally renovate, including new-build extension.
Obstacle
This case was tricky given that the client had already entered into a JV loan agreement with a private investor who had a charge over the property. It was purchased for £500k and was offered unencumbered with first legal charge available as security. Despite paying £500k for it, the asset was valued at £450k by our lender and it later transpired that the private equity investor had the first charge and they had to agree to enter into a deed of postponement to give our new funder the first charge to release the funds needed to complete the project – a further £400k (in stages). Final GDV of £1.25m when finished. This was in addition to the property being Grade II listed, complete with a thatched roof, which is difficult to place.
Outcome
The funds were secured to fully fund the purchase and entire renovation via a stage-released drawdown development facility.
