Kuflink Saves Property From Receivers
Kuflink was recently approached by a potential borrower in a complicated financial situation, who needed urgent access to funds in order to halt repossession proceedings against his commercial premises. To make matters harder, the client lives abroad and works in various different countries, which had raised concerns for some less open-minded lenders. The fact that the tenant leasing the property was another company owned by the borrower further complicated the situation.
However, Kuflink approach complex cases with a ‘can-do’ attitude, so our sales team and underwriters got to work right away to provide a fitting solution.
Not only were we able to lend £264,000 for a 12-month term to clear the borrowers’ indebtedness, but we were able to complete this deal in good time and save the property from receivers. We capped the total loan amount at 60% LTV and took a first charge over the commercial property as our security.
This loan is a great example of how flexible, fast and efficient Kuflink is when it comes to delivering short-term finance. We consider each enquiry in-depth and have an excellent reputation for taking a fair, objective approach to all our clients.
Deal Specifics
Funds Required: £264,000
Loan Duration: 12 Months
Open Market Valuation: £440,000
LTV: 60%
Security: 1st Legal Charge
Kuflink Helps Client to Purchase Hotel on Norfolk Coast
The Challenge
Our client, who has experience in purchasing and enhancing the value of hotels, required a bridging loan of £385,000 to purchase a 24-room resort hotel in Mundesley, Norwich. The hotel was purchased as a going concern for a consideration of £775,000, however we have provided our facility against the bricks and mortar open market value of £550,000.
The Solution
Kuflink was able to secure a 1st legal charge over this property and lend £385,000 to our client for a 24-month term. The client plans to exit the loan by refinancing with a commercial lender and has been advised that they will require 12 months’ trading accounts prior to this, therefore there is a possibility that the client may be in a position to repay the loan sooner than 24 months.
Deal Breakdown
Funds Required: £385,000
Loan Duration: 24 months
Open Market Valuation: £550,000
Going Concern Value: £775,000
LTV: – 70% against OMV or 53% against the going concern value
Security: 1st Charge on a Resort Hotel in Norwich
Why Our Client Chose Kuflink
The client chose to proceed with Kuflink as we could provide the required loan swiftly and also at a very competitive rate.
Interest rates on bridging loans are subject to underwriting criteria. If you do not keep up with repayments your property will be at risk of repossession.
Kuflink helps client to purchase auction property
The Challenge
Our client is a London-based professional who wanted to purchase a 3-bed residential property in Northampton for £140,000 at auction. They required a loan of £121,000 in order to complete this deal. The client plans to undertake some light refurbishments for this property, which currently has an open market valuation of £173,000.
The Solution
Kuflink were able to secure a 1st legal charge on this property and agree a 12-month loan of £121,000 with our client. This term gives our client plenty of time to refurbish the property as planned and then, in turn, sell the property.
Deal Breakdown
Funds Required: £121,000.00
Loan Duration: 12 months
LTV: 70%
Time Taken to Complete: 11 working days
Security: 1st Charge on Residential Property in Northampton
Charge: First Legal Charge
Open Market Valuation: £173,000
Why our client chose Kuflink
The client chose Kuflink as we were able to complete within their timescale of 11 working days, which was necessary due to the property being an auction purchase.
Interest rates on bridging loans are subject to underwriting criteria. If you do not keep up with repayments your property will be at risk of repossession.
We helped fund conversion costs of a new build nursing home
The Challenge
Our clients are well-established property investors and developers who own a successful building supplies company, with over 40 years’ experience between them.
Having already spent some £1,670,000 on the project to make the property completed to a shell finish, our clients wished to borrow a further £1,224,000 to complete the development of the partially constructed 47 bed care home over approximately seven months. Once the work has been completed on the property it is envisaged the LTV will reduce to 26%.
The Solution
Kuflink worked closely with the clients to agree a loan of £1,224,000 over a 12-month term, to be drawn in six stage payments of circa £200,000, with the first tranche being drawn in November 2017. Prior to each drawdown a qualified surveyor will visit the property to assess progress of the development.
As security we took a First Legal Charge over the commercial property.
The client’s exit strategy is to re-finance using a mainstream lender and discussions had already started at the time the loan was agreed.
Deal Breakdown:
Funds required: £1,224,000
Loan duration: 12 months
LTV: 61%
Security: Commercial Property
Charge: 1st Legal Charge
Open Market Valuation: £2,000,000
Why our client chose Kuflink
The client came to Kuflink as they knew that we would find a flexible solution that was a great fit for their business needs.
We helped a businessman meet his Christmas orders
The Challenge
Our clients are well-established business owners, who wanted to borrow £52,500 to assist with the manufacture of 60,000 units of jewellery.
They have more than 20 years’ experience in the jewellery industry and provide bespoke jewellery throughout the UK and Europe. They required quick access to finance to ensure they could meet pre-Christmas orders.
The Solution
Kuflink secured the loan against two properties by way of an Equitable Charge. Both properties are detached residential homes located in the London Borough of Harrow and have a combined open market valuation of £3,190,000. There is an outstanding mortgage on both properties and taking these into account, the LTV is just 27%.
The client’s exit strategy is to repay the loan from the sale of the jewellery to various retailers.
Deal Breakdown:
Funds required: £52,500
Loan duration: 6 months
LTV: 27%
Security: Two detached residential properties located in the London Borough of Harrow
Charge: Two Equitable Charges
90 Day Valuation: £3,190,00 across both properties
Why our client chose Kuflink
The introducer knows Kuflink well and is aware of the fact we are willing to be flexible and go the extra mile to help our clients.
Kuflink lends £350,000 allowing the client to purchase a new commercial property
The Challenge
Our client is a company, incorporated in February 2017. The client wished to purchase a commercial property, with a view to submitting planning permission to convert the property into residential. If successful, this would enable the client to sell the property for more than the purchase price of £575,000.
As the commercial property had received a lot of interest from other potential buyers, we were approached for a Bridging Loan to allow the client to complete the purchase quickly.
The Solution
We looked at the bigger picture and took into consideration the fact that the director and shareholder of the company had a number of years’ experience in property investment, as well as the fact the client is submitting a planning application to convert the commercial premises into residential, which should increase the value of the property. Consequently, we were able to release the funds to the client in 21 days. The client will repay the loan by selling the property.
Deal Breakdown:
Funds required: £350,000
Time taken to complete: 21 working days
Loan duration: Six months
LTV: 70%
Security: Commercial Property in Sandhurst, Berkshire
Charge: 1st Charge
90 Day Valuation: £500,000
Why our client chose Kuflink
The broker approached Kuflink for this Bridging Loan as he has a great relationship with the company, built on trust and fast completions.
A Bridging Loan from Kuflink enables a client to secure a commercial unit
The Challenge
Kuflink was approached by a broker who had a Bridging Loan request from a Kent client.
The client is an established business partnership who was looking to purchase a commercial unit and three residential flats with a small piece of land around the development. The client required £400,000 to complete the purchase, and they needed to act quickly as another party was offering more than our client to secure the purchase.
The Solution
To complete the deal, we were able to take a 1st Charge over two properties in Coventry, as well as an Equitable Charge over a property in Gravesend. This enabled Kuflink to pay out the required funds to the client in just 16 working days. The client will be re-financing to repay the loan.
Deal Breakdown:
Funds required: £400,000
Time taken to complete: 16 working days
Loan duration: Nine months
LTV: 70%
Security: End Terraced House and Ground Floor Commercial Convenient Store with associated storage plus 3 Self-Contained Residential Flats in Coventry and a commercial premise in Gravesend.
Charge: 1st Charge over both Coventry properties and an Equitable Charge over the property in Gravesend.
90 Day Valuation: £580,000
Why our client chose Kuflink
The client chose Kuflink as we are known for our speed and, as we are local to them, we were able to establish a close relationship whilst we completed the deal.
How we helped a client get his business up and running
The Challenge
Kuflink was approached by a restauranteur, who is also a landlord with a complex Bridging Loan request. The client had bought a fish and chip shop and required funds to purchase stock, as well as refurbish the shop. Without the finance the client wouldn’t have been able to get his business up and running and the clock was ticking for him.
The Solution
The client had a buy-to-let property located in Greater London over which we were able to take a Second Charge. As there was plenty of equity in the property, we were able to provide funding for the client in just over three weeks. This enabled the client to refurbish and stock his shop and commence trading. The client’s exit strategy is to arrange long-term finance with a mainstream lender.
Deal Breakdown:
Funds required: £113,500
Time taken to complete: Just over three weeks
Loan duration: 12 months
LTV: 62%
Security: Buy-to-let three-bedroom semi-detached freehold property in Greater London
Charge: 2nd Charge
90 Day Valuation: £427,000
Why our client chose Kuflink
The client needed to get his business up and running as quickly as possible, and he knew that Kuflink’s bridging loans have provided a solution for lots of people in similar situations.
Kuflink helps a client successfully buy the commercial property he had been renting for over 20 years
The Challenge
Our client is an established businessman who has leased his ground floor clothing shop for over 20 years. He now wishes to buy the two-story freehold commercial property from which he trades in Birmingham from his landlord for £360,000.
On the second-floor there is a beauty salon who have spent a substantial amount of money renovating the salon but don’t have a lease. This couldn’t be put in place before the sale was completed as this would have alerted the tenant to the sale of the property and at that time our client didn’t own the property.
Speed was of the essence as the property hadn’t gone on the market and the vendor wanted to ensure the sale went through quickly. A further complication was that the sale was subject to Probate.
However, the client had already started to put in place long-term finance but needed to complete quickly to meet the vendor’s timescales.
The Solution
By working closely with the client and the broker we were able to overcome the numerous challenges and took a 1st Charge over the commercial property. Once the deal completed the client is arranging a lease with his tenant on the first floor and will be finalising his long-term finance to repay our loan.
Deal Breakdown:
Funds required: £252,000
Loan duration: Six months
LTV: 70%
Security: Two-storey retail shop
Charge: 1st Charge
Open Market Value: £360,000
Why our client chose Kuflink
This deal came from a new broker that we met at a recent corporate event. The broker was confident that Kuflink was flexible given the complicated nature of the deal and could meet the timescales required.
