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.
