An electrical estimator approached us, he owned two residential investment properties and had identified a further investment property, a doctors surgery, he wished to purchase with the intention of obtaining change of use back to residential prior to completion and draw down of funds. The purchase price was £105,000, the client had £31,500 and so we were to raise a loan of £73,500 over 20 years.

We used our whole of market experience to raise competitive finance using several ingredients: –

  1. A first legal charge on the freehold of the property being purchased, valued at £105,000.
  2. The proposed rent for the property is £750pm /£9,000pa and there was excellent demand in the area for rental properties of this type.
  3. rental income of £12,000pa from his other investment properties.
  4. Client’s annual salary of £15,500.

CFBUK was able to secure full funding at a competitive rate of bank base rate plus 4.45% over the desired 20 year term.