auction purchase via an SPV, PL1
MT Finance was approached by clients looking for £108,000 to complete an auction purchase, plus renovations via a special purpose vehicle (SPV) limited company. The SPV has three directors and one corporate shareholder, sharing a large buy-to-let property portfolio. The clients needed a specialist lender as they intended to rapidly refurbish and develop the property for release on to a property investment platform.
MT Finance solution
Despite the complex corporate structure of the company, in just 13 days we provided a £108,000 loan at 55% LTV, based on an open market value of £166,000. Interest was retained at 0.88% per month over a 12-month term, with no exit fees or ERCs. No personal guarantees were required.
Our loan meant the client was able to purchase the property by the proposed completion date- thus saving their deposit. What’s more, the 12-month term gave them plenty of time to carry out the works and significantly increase the value of the investment property. The client will then be able to sell the investment asset against a higher value, enabling them to repay the short-term loan and enjoy a substantial profit.