Purchase to obtain planning, BN11
A client had created an SPV and required a loan of £270,000 to purchase a vacant pub. The client intended to purchase the property and then apply for planning permission for the conversion to 6 flats. As the property currently didn’t have planning and was vacant, financing options were limited.
MT Finance solution
We provided the funds requested based against the vacant possession value to enable the purchase. Interest was retained at 0.89% over a 9-month term, at 60% LTV. The client was not required to provide a personal guarantee.
By taking out the short-term loan, our client was able to secure the purchase and the 9-month term gave her the time needed to obtain planning and refinance through a development lender to start the conversion project.