property extension & conversion, N12
Our client was extending and converting a single residential property into 2 semi-detached residential properties. As part of the transaction, the client was also raising £350,000 to buy out the existing business partner’s share in the property.
MT Finance solution
We provided a 1st charge bridging loan of £480,000 at 60% of the current open market value. With the remaining funds required for the works being released in stages against the increasing value of the asset. Interest was retained at 0.89% per month, over a 12-month term without exit fees or ERCs. We didn’t require any personal guarantees.
The client was able to buy out his business partner, fund the remaining works to complete the conversion and sell the property against the higher value.