Specialist Valuations? No Problem!
The Key Points
- Our client was looking to borrow £440,400
- This was to assist with the refurbishment and conversion of the security (a former care home) into 4 self-contained assisted living flats
- The clients run a company specialising in care services with over 24 years’ experience
The Context
A broker recently approached us with a niche deal from their clients, who needed £440,400 to assist with the refurbishment and conversion of the security into assisted-living accommodation. The security had previously been used as a care home and needed specialist expertise to properly appraise both its current value and the gross development value. Our broker advised that other lenders had been cautious of the deal because of this, but Kuflink have built up a trusted panel of valuers over the years and knew we had the right contacts to make it happen.
The Resolution
With the tricky valuations now complete, we proceeded on the basis of a fantastic 44% loan to value and sent funds to our client, kickstarting their 12-month conversion project in great time.
The loan is being released in tranches, with a day one advance of just over a third of the total amount. The rest of the loan will be released in accordance with the progress made with the property and in consultation with our specialist surveyors.
Meet the Team: Case Managers
Ever wondered what happens at Kuflink HQ when someone applies for a loan? Clare, Rebecca and Lucy from our Cases Management team explain how they process applications, vet borrowers and instruct valuations in the very first instalment of our ‘Meet the Team’ series!
Tell us about your team and the work you do at Kuflink
Clare: In short, we package deal files and carry out the due diligence for every enquiry that the sales team bring in. We put together an initial decision in principle for these loans, and once the formalities are agreed we do all the necessary behind the scenes work from credit checks and land registry searches to valuation reports and legal paperwork. We’ll take a deal from the application stage right through to funds being sent to our clients.
What does a typical day look like for you? Who do you work with the most?
Rebecca: We’ll each have multiple different cases to manage at any time, so it’s pretty busy! We work really closely with the Underwriting and Sales teams in house, and externally we have to maintain good relationships with Solicitors and Valuers to help us complete as quickly as possible.
What skills make a good Case Manager?
Clare: The main thing is attention to detail, we always have lots of information to keep on top of
Rebecca: Organisation is key too, as things need to be done quickly and accurately!
Lucy: And teamwork – we’re all happy to lend a hand with each other’s cases when things get hectic
What’s your favourite thing about your job?
Lucy: It’s really rewarding when one of your loans complete and the client gets their funds, so you know you’ve helped someone to start their development or purchase a new property
Have you got a favourite memory from your time here?
Clare: We’re all encouraged to attend industry events with the team, and I went to my first last year – the comedian they got in to host was fantastic and it was nice to spend time with the team outside the office.
Lucy: I only joined in October last year, but my favourite thing so far is how welcoming everyone was. I felt at home right from the start.
Rebecca: In summer, the whole team dressed in red, white and blue and we closed the office early to watch the world cup with a BBQ by the river!
Get to know the people behind your investments with our new weekly ‘Meet the Team’ posts. Have a question you’d like us to ask? Email your suggestions to hello@wp1www.kuflink.com
Kuflink Complete Complex Bridge in Just 4 Days
Kuflink have completed an emergency bridging loan in just 4 days, after another lender was unable to meet the requirements of the deal.
The borrower, an experienced landlord with a high net worth, required urgent funding in order to repay existing indebtedness against a property in his portfolio. Speed and efficiency were key to this deal as the borrower was extremely close to his re-term date and, after being let down by another provider, needed a lender that understood this.
Although bridging loans take an average of 3 to 4 weeks to complete, the Kuflink team drew upon their wealth of experience and slick internal processes to quickly package three loans, totalling £562,500.
CEO Narinder Khattoare commented ‘The security properties, exit strategies and structures of these deals varied and as such, the bridge was a complex one – luckily, we are used to this type of deal and were able to rise to the challenge’.
At the end of the six-month term, the borrower will repay the facilities following the sale of severalproperties, leaving them in a great position to continue growing their portfolio.
In need of fast finance? Get in touch today to see how we could help!
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.
