Kuflink provides finance to enable renovations to a semi-commercial
The Challenge
Our clients, who are business partners, and own an unencumbered semi-commercial property required £210,000 to refurbish the property, pay outstanding utility bills and cover some credit commitments. The property comprises a Chinese Restaurant on the ground floor and a four-bedroom flat on the first floor. As the clients had some adverse credit and the property required some refurbishment work, they hadn’t been able to secure long-term finance initially. As the property was unregistered additional work was required before we were able to register our Charge on the security.
The Solution
As the property was unencumbered we were able to take a 1st Legal Charge over the property as security. We agreed a term of 12 months to allow the clients to complete the refurbishments and secure long-term finance with a mainstream lender.
Deal Breakdown:
Funds required: £210,000
Loan duration: 12 months
LTV: 49%
Security: A semi-commercial, end-of-terrace property located in Newmarket with a Chinese Restaurant on the ground floor and four-bedroom flat on the first floor.
Charge: 1st Charge
90 Day Valuation: £425,000
Why our client chose Kuflink
The broker knew that Kuflink would think laterally to find a solution and provide the short-term funding which allows the clients time to refurbish the property and secure finance with a mainstream lender.
We helped property investors awaiting long-term finance
The Challenge
Our clients are well-established property investors with in excess of 35 years’ experience between them, who have a substantial investment property portfolio. They wanted to purchase a further investment property for £1,300,000 and required £455,000 for the deposit.
The clients were already in discussions with a mainstream lender to arrange long-term commercial finance, however, they required finance quickly to complete the purchase.
The Solution
Kuflink worked closely with the clients to agree a loan of £455,000 for a three-month term, secured against a First Legal Charge on another investment property.
The client’s exit strategy is to re-finance using a mainstream lender and they were already in discussions in this regard when the Broker approached us for the loan.
Deal Breakdown:
Funds required: £455,000
Loan duration: 3 months
LTV: 70%
Security: Semi-Commercial Property property in Twyford, Berkshire
Charge: 1st Legal Charge
90 Day Valuation: £650,000
Why our client chose Kuflink
Kuflink has a long-term relationship with the Broker who knew that we would be able to provide the finance in the timescale required, whilst the clients finalised their long-term finance, with a main stream lender.
Kuflink helps a client to complete renovations The Challenge
The Challenge
Our client and his brother incorporated their company in June 2014. The nature of their business is the development of building projects. They own the commercial property but reside in different parts of the UK some 250 miles apart. They required a loan of £155,000 over a nine-month period in order to refurbish the office conversions and pay their outstanding invoices to the builders who had completed the works on the commercial units. For this they needed the funds quickly.
The Solution
We arranged for the clients to visit our office based in Gravesend, enabling us to complete all the formalities without any delays. This meant we could release the required funds to the client in just 14 days. In order to repay the loan, the client plans to sell the commercial units.
Deal Breakdown:
Funds required: £155,000
Time taken to complete: 14 days
Loan duration: Nine months
LTV: 30%
Security: 4x Grade 2 listed former Victorian Sheds next to Upnor Castle.
Charge: 1st Charge
90 Day Valuation: £624,000
Why our client chose Kuflink
The clients required speed, and they knew Kuflink is known for speedy completions on our Bridging Loans.
3 Reasons Why You Should Consider Alternative Property Investments for 2018
Buy-to-let has traditionally been one of the most popular ways to invest in property, and can offer high returns. However, a number of significant changes to landlords’ financial and maintenance responsibilities are due to come into effect this year, some of which are likely to make buy-to-let a less attractive investment.
If you already own rental property, or were considering it for your next investment, here are 3 things you need to be aware of:
1.) Landlords are losing buy-to-let mortgage tax relief
Until April 2017, landlords could deduct interest payments against rental income thus reducing their tax bills.
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However, from April 2017, this relief is being gradually phased out in favour of a 20% tax credit against the interest element of the mortgage:
From April 2017, landlords can claim 75% of mortgage tax relief.
From April 2018, landlords can claim 50% mortgage tax relief
From April 2019 landlords can claim 25% mortgage tax relief
From April 2020 onwards, landlords can claim 0% mortgage tax relief and will instead receive a 20% tax credit for mortgage interest
2.) The Tenant Fees Bill will protect tenants from paying referencing or renewal costs
A first draft of the Tenant Fees Bill was submitted to Parliament in November 2017, with the intention to ensure that tenants ‘should no longer be hit by surprise fees they may struggle to afford and should only be required to pay their rent alongside a refundable deposit’.
In practice, the bill will mean that landlords and letting agents have sole responsibility for covering the cost of referencing and renewing a tenancy etc. It will also introduce a deposit cap and a £5,000 fine for those in breach.
3.) It will soon be illegal to let properties that don’t meet minimum energy efficiency standards
As of April 2018, landlords will no longer be allowed to let properties with an F or G-rated energy performance certificate. Those found doing so will face up to £4,000 in civil penalties. This year, the rules will only apply to new tenancies but will extend to cover existing tenancies in April 2020.
Are there simpler ways to invest, without all the hassle?
Peer-to-Peer Investing
Peer-to-peer investing, sometimes called p2p lending, brings borrowers and lenders together to secure funds for a variety of projects. For Kuflink investors, all opportunities are backed by UK-property loans and underwritten according to our strict lending criteria. Investors can earn up to 7.2% interest pa gross* and get started from just £100. Kuflink co-invests up to 20% in every opportunity and, what’s more, our investors have never lost a penny!
Innovative Finance ISAs
The UK Government launched the Innovative Finance ISA (IF-ISA) in 2016, offering investors the chance to use their annual tax-free savings allowance to invest in peer-to-peer lending. As a HMRC-approved ISA manager, Kuflink offers flexible term, property-backed IF-ISAs with returns of up to 5.35% interest pa!** To find out more about what we have available and how an IF-ISA could make your money work harder for you, check out our blog post on why 2018 is the year of the IF-ISA.
Find out more about alternative ways to invest in UK property with Kuflink
*Capital is at risk. Rate correct as of 31/01/18. Past performance is not necessarily a guide to future returns. Independent financial advice is recommended.
**Capital is at risk. Rate based on a 5-year fixed-term investment.
Tech Innovations Revolutionising the UK Property Market
In recent years, the UK property market has seen huge periods of well-publicised growth, but this has not been the only significant change; the way in which consumers interact with property is transforming. A huge number of entrepreneurs, from ex-CEOs to former Dragons’ Den contestants, have raced to launch their PropTech start-ups in time to bechtome an established part of this emerging sector. From digital mortgage brokers to property-backed peer-to-peer investment platforms, PropTech innovations are fast becoming an integral part of the UK property industry.
What is PropTech?
‘PropTech’ is short for Property Technology.
The term encompasses technology such as websites, apps and online platforms that are revolutionising the way consumers buy, sell and invest in property.
Who are the market leaders?
You may be surprised to learn how many PropTech companies you’re already familiar with, or perhaps even use.
Property websites Zoopla and Rightmove have dominated the UK PropTech Market since they launched over a decade ago and, for many people, are two of the most recognisable examples of PropTech. Rightmove receive 120 million visits to their website per month!
Online estate agent Purple Bricks have also established their position in the mainstream market, reporting a 150% increase in revenue in the 6 months to October 2017.
Who should you look out for in 2018?
As well as the major players, the PropTech sector is home to a huge number of exciting new ideas with potential to completely change the game! Companies worth watching in 2018 include:
No Agent, an online solution for landlords wishing to find tenants and manage their rental properties. They aim to overhaul the traditional rental market by offering a more affordable, internet-based solution for landlords to find, reference and credit check tenants as well as organising property maintenance as needed.
Kuflink, an online peer-to-peer platform where you can invest in loans secured against UK property. Investors can register an account, transfer as little as £100 to their online wallet, choose which loans they would like to invest in and earn up to 7.2% interest pa gross!*
Reposit, that offers a deposit service for tenants who wish to avoid the usual deposit of one to two months’ rent, by offering them the option to pay a non-refundable amount equal to one weeks’ rent. The firm want to make renting more accessible whilst still offering security for landlords.
Appear Here, which links retailers in need of a short-term rental spaces with landlords who can provide exactly that. Their service mainly facilitates pop-up shops and stalls, and clients so far include big brands such as Dior.
If you’re keen to be a part of the PropTech revolution, peer-to-peer lending could offer you an accessible way to share in the success of this emerging market. To find out more about how it works and what’s on offer, visit the Kuflink website.
*Capital is at risk. Rate correct as of 21/12/2017. Past performance is not necessarily a guide to future returns. Independent financial advice is recommended.
