Commercial Finance Brokers (UK) (CFBUK) was approached by some very experienced property developers who were looking to raise capital against a number of properties they had built some time ago but had retained due to suppressed market values.
These properties had been rented and, once tenants vacated, it was our client’s intention to sell these on the open market – although this may be over the next couple of years. The funds raised would be used to purchase and develop a further building development project.
The developers already had a current mortgage of £600,000 and wanted to raise further capital of £500,000. CFBUK were therefore challenged to raise the loan required of £1.1 million.
Using a first legal charge on existing property valued at some £1.7 million, current and forecast rental as well as additional background income, CFBUK was able to secure full funding at a competitive rate over the 25 year term of bank base rate plus 3.15%.