A high street bank referred a property conversion application that was not immediately income producing, needed to complete within 15 days as it had been purchased at auction, and was below the appetite of the bank in respect of loan size of the conversion/development transaction.
The Sheffield property which had previously been used as a small hotel had recently obtained planning permission to convert the property into a 6-bed HMO and had been purchased at auction for £252k.
After speaking with their accountant, the clients also decided they wanted to assign the auction purchase contract to their SPV Ltd company before completing the purchase, as it would prove more tax efficient for them going forward.
BFS funded the purchase & c. £120k conversion works the client required. Once complete and let, the introducing bank re-financed the property onto a 20-year term loan in Autumn 2017.
