Client circumstances:
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.
The benefits:
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.