The Story
This loan was specifically allocated for the purpose of redeveloping an existing detached house located in the picturesque county of Kent. The property, which is situated in a desirable area known for its scenic views and tranquil environment, had already received the necessary planning permissions to undergo a significant transformation. The redevelopment plan involved converting the current structure into three luxury houses, each designed to offer approximately 2,400 square feet of living space. These new homes are intended to feature modern amenities and high-end finishes, catering to prospective buyers looking for spacious and upscale living options.
The Figures
Loan £2.3m senior debt and £200k mezzanine debt
LTGDV 70%
GDV £3.6m
Rate £9.75% senior debt and 18% mezzanine debt
The Challenges
The vendor, having reached a significant milestone in their life, was preparing for retirement and had decided to utilise the proceeds from the sale to invest in a small holding. However, the situation surrounding the sale was far from straightforward. We found ourselves under immense pressure within the chain of transactions, as the owner of the small holding was in a highly advantageous position. With multiple interested parties vying for the same property, the urgency escalated. The owner had set a firm deadline of just five weeks to finalise the sale, creating a ticking clock that amplified the stress and stakes involved.
The Solution
Constant communication with both the client and the vendor was paramount to the success of our project. By maintaining an open line of dialogue, we ensured that all parties were kept informed of developments, changes, and any potential challenges that could arise during the process. Our keen knowledge of the industry landscape played a crucial role in identifying not only the most cost-efficient facility that met our requirements but also a lender who was capable of acting with extreme haste. Their ability to act quickly, coupled with our strategic planning and effective communication, allowed us to navigate the complexities of the project and ultimately complete it within the tight timeframes given.
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