Amount raised: £550,000
Purpose of finance: Emergency Funding Raised for Property Purchase
So just Type of finance: Bridging Finance – 100%
An emergency case referred by a leading high street bank, Central Finance pulled out all the stops
Our client was a very successful business lady who had just retired and was in the process of selling her care homes. She had exchanged contracts on 2 new build properties that she had bought for family members and at the 11thhour the buyer of the care homes pulled out. Whilst the client was listing these properties in the auction, there was a deadline to meet for completion on the new builds. If she couldn’t complete on the said date, she would lose the properties and her monies paid to date.
Timescale was key, the client had to complete within 3 weeks or lose the properties she desperately wanted.
Whilst the care homes seemed to be the obvious choice for the client, the reality was that we would have had to get 3 commercial valuations done and all the legals done within a 4 week timescale. The client owned a block of 20 flats unencumbered. The loan to value was less than 30% so Central Finance were able to secure a fantastic rate of 0.47% per month against this property on a 6 month bridging facility. The exit to the finance was the sale of the care home properties. The client only needed to sell one to repay the loan. There were a few challenges along the way with regards to few long term leases that weren’t evident at the onset but with the right team of solicitors on both the clients side and the lenders, we all worked together to resolve issues and get the deal across the line. The client sold one of the properties within 3 weeks of completion of the loan, so finance costs were kept to a minimum.
Total finance raised: £550,000
Limited Company Mortgages
Amount raised: £1,225,000
Purpose of finance: Portfolio Property Loan
Type of finance: Commercial Buy to Let Portfolio Mortgage – 100% finance raised.
Our client was an established but to let investor who has been caught with the change in tax legislation on rental income and mortgage interest relief. The client was aware that changes were coming but hadn’t specifically looked at the financial impact that would have on their annual income. With good advice from a new accountant who was a tax specialist, Central Finance worked with the client and the accountant to move the portfolio over quickly to minimise the effects of the new tax regime.
Timescales – this needed to be completed prior to the new tax year, 26 residential properties to move over and the client was specifically focused on the lowest rate of interest. They needed to refinance their total current borrowings across the entire portfolio along with raising additional capital to further expand. Whilst the client had had discussions with his own bank, they wanted to have security over all commercial investment properties and the residential portfolio which the client was unhappy with.
Due to good strong relationships that Central Finance have with lenders and the ability to work at speed with valuers, solicitors and those in key positions, we were able to secure a facility that met all the clients requirements. Security was only taken over the residential portfolio enabling the client to leave the commercial element unencumbered. This gave the client flexibility for future funding should they need to capital raise in the future to purchase additional investments.
Total funding raised: £1,350,000
Commercial Property Finance
Amount raised: £1,350,000
Purpose of finance: Capital Raise for Business Investment for new business start up
Type of finance: Commercial Mortgage – 70% loan to value, 100% of funding requested.
A challenging case where Central Finance were critical in raising funds to support the launch of a brand new clothing company
Our client was looking to support his sons in a new venture requiring significant cash input. Timing was critical to raise funds to ensure that product was in line with summer/winter collection production timescales. Infrastructure for offices, procurement, branding, online platform for ordering etc. The client had an excellent accountant supporting them and a fantastic business plan.
The client had significant assets for which we could raise the funds. This money would then be lent from Father to the sons newly formed limited company, which was not a property business. We needed to raise maximum loan to value against assets to reduce security taken which was particularly important to the client as these assets were owned with other family members. This presented a challenge in that the lenders who would have been suitable for a standard property transaction, would not support capital raising of funds not to be used for further property investment.
Additionally certain family members were not comfortable with the monies being raised and had concerns. Central Finance referred the client to a trusted legal practice who worked closely with the clients Accountants to ensure formal documentation and advice was given to help protect their interests.
Multi-tenanted properties with low grade EPC’s – total of 32 tenants.
Complete refinance of 4 key properties on a commercial mortgage
Total finance raised £1,225,000
Amount raised: £650,000
Purpose of finance: New business premises for business expansion and purchase of premises
Type of finance: 100% finance via Business Loan, Bridging Finance, Development Finance and Commercial Mortgage
Our client had an established café bar business and saw the opportunity in another city to replicate what they had…however the building was a Grade II Listed building that had been unoccupied for a number of years and significant investment would need to be raised. The business was a good strong trading business, with strong unique branding. The client was a complete visionary who was determined to make the project work. Central Finance worked hard to help them achieve their goals.
Grade II Listed. No client experience in renovation/restoration. Minimal cashflow for works. Property was going to auction so the client need to complete quickly. Full planning consent was to be needed and change of use for the building.
Trading Business Loan - to provide the deposit towards the purchase and associated costs.
Short term Bridge Facility - to provide purchase funds and facility to enable planning consent to be obtained.
Development Finance Facility – once full planning was obtained a facility was set to enable the works to be completed.
Commercial Mortgage – a refinance was obtained on an owner occupied basis against the trading business.
And…..in the middle of all this an original roman floor was uncovered in the basement….we got there in the end though!
Total Funding Raised: £650,000
Amount raised: £950,000
Purpose of finance: Development of 2 Retail units and 10 flats
Type of finance: 100% funded via Buy to Let Mortgages, Trading Business Loan and Development Finance
Our client came to us with no development experience but a great opportunity to build out on a plot of land next to his shop. The plans were for 2 retail units and 10 residential flats, which the client wanted to build out and retain for long term income and investment. The client had already obtained the land and full planning permission was in place.
100% Finance required
No development experience
High Build Cost as a percentage of Gross Development Value
Ensuring the long term mortgage numbers covered the development finance costs
This was a particularly challenging case, where we had a client with vision but absolutely no idea how he was going to put it together. The particular challenge was the cost of the build, which was high presenting a challenge for all lenders as the profit was less than 15% of the Gross Development Value. We had to structure the deal so that significant cash was raised to contribute to the build cost. Finance was raised as follows:
Tranche of refinance raised against Buy to Let Investment Properties the client owned
Trading Business Loan against supermarket business the client owned
Development Finance Facility for balance of funds.
Pre-agreed Commercial Mortgage for refinance once development is completed.
Total funding raised: £950,000
HMO’s & Buy to Let
Amount raised: £270,000
Purpose of finance: Purchase and Redevelopment of Property to create 8 Bed HMO
Type of finance: Bridging Finance @75% loan to value with uplifted Buy to Let Mortgage at 75% of revised value
Our client was struggling to find a lender to fund a commercial conversion to a HMO, Central Finance found the solution.
The client had a number of HMO’s and had good track record. The opportunity came to purchase an old window showroom with residential accommodation upstairs and a separate workshop annexe with the potential to create 4 more dwelling units. Total number of units to be created was 10. The clients had formed a newly created limited company, with 4 shareholders. 2 with experience, 2 without and one with an historic CCJ.
Change of Use, Certificate of Lawful Planning & HMO Licence were all to be needed for long term mortgage lending, amongst significant remodelling and renovation works. The historic CCJ whilst satisfied was also a challenge with some lenders. The long term plan was for the property to be let to vulnerable adults/assisted living, which again has its challenges for most lenders.
Short term bridge facility with Lender A, for a 6 month term whilst all works were complete and necessary compliance was put in place. Exit finance was pre-agreed prior to drawdown of the loan to ensure the clients had a clear strategy for refinance and long term funding.