Large interest only commercial loan on 27 apartments for developer client
What was the situation?
We were recently approached by a client who had secured a fantastic completed development of 27 apartments in Dover at a great price 25% under market value. We had secured bridging finance for the acquisition at 75% of 180-day value. We were required to source a commercial loan from a lender who was able to take on all 27 apartments in one facility to pay back the bridging finance onto a long-term deal and increase the leverage up to 75% of Open Market Value . This was so we could release money to allow the client to continue growing his portfolio on property development projects.
What was the issue?
The issue at hand was that our client had recently taken out large loans with many of the commercial lenders which meant he was at the maximum loan amounts already, so going to 75% of Open Market Value was a real challenge when there is a limited number of lenders we could approach – even though the rental yield was strong.
What was the process?
Through cultivating strong and long-lasting relationships with our trusted network of lenders, it is extremely rare that we are unable to find a solution. Despite not fitting some of the lenders’ criteria from those that were in a position to provide the client with additional funds, we successfully secured commercial loan funding from one of our core commercial lenders that was keen to support our client on the transaction on a five-year fixed rate at 4.54% p.a. and could set the whole loan up on an interest only basis which helped us maximise the leverage.
What was the solution?
As a result, we secured everything within the deal that our client was seeking and they completed the deal within the required timeframe. We have continued to build a strong relationship with the lender and the client is now working with them on two new deals. In the end, the capital raised against the asset went towards the new acquisition and our client was thrilled with the solution. Whenever our clients need us in support of their new projects, we’ll be the perfect partner – no matter how complex the circumstance.
Lending solutions with LDN Finance
Are you looking to secure a commercial loan or development finance to help you complete on a new or existing project? At LDN Finance, our expert brokers have a plethora of experience in securing specialist finance solutions to suit your individual circumstances, working closely with our trusted network of private banks and specialist lenders to formulate bespoke arrangements at competitive, market-leading rates.
Get in touch with us to organise an initial consultation.
Need competitive specialist funding?
We can help.
Get your project over the line at market-leading rates with the unrivalled knowledge and network of our development, commercial and bridging finance specialists. Our expert advisers are on hand to find the ideal solution for your next or existing project, no matter the complexity.
Testimonials
Our happy clients
My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
As a returning customer, I would like to express my sincere thanks to the team for their outstanding support during the completion of my property purchase. In particular, Catherine and Darren have been incredibly helpful throughout the process. Their communication, professionalism, and customer service have been absolutely excellent, making the entire experience smooth and reassuring. Many thanks again for all your hard work.
Owen was absolutely amazing and supported me every step of the way throughout the mortgage process. He was always clear, patient, and incredibly reassuring, making what could have been a stressful experience feel smooth and manageable. Bharathy was also really helpful, promptly getting in touch and making sure all the relevant information was handled efficiently. I couldn’t be happier with the service and would highly recommend them both. Five stars without hesitation.
Related Case Studies