Deal agreed for development of 8×6 bedroom detached houses:
- Deal to be done in 3 phases with phase one being the land purchase and build of first 3
- Land value of £1.5M with 60% being lent against this ie £900k and then 66.5% being lent against the development costs of £1.6M ie £1,064,000
- Total debt on phase 1 is £1.964M against end value of £4M
- Interest roll up agreed and facility termed over 12 months
- Main condition of loan was that at least one of the first 3 properties was sold and contracts had exchanged
- Phase 2 & 3 also agreed and total debt will be in the region of £4.5M
Purchase of commercial workshop & warehouse. This was being purchased from the administrator of the former trading company, which were renting the premises back to the new trading company on a short term licence:
- Each of the shareholders of the new trading business, which had 9 months profitable trading under it’s belt, illustrated by monthly management accounts, had sufficient value in their SIPP’s to purchase the property through the 2 pension funds along with the 50% loan from the Bank allowable under the Inland revenue rules.
- Purchase price £500000, loan amount £186000. 15 year repayment term. Interest B + 3%
- Loan conditional upon a new FRI commercial lease to be drawn up between the new trading company & the SIPP
Property Investment Finance
£375000 term loan agreed against 5 unencumbered residential investment properties:
- The funds were required to provide a deposit toward the purchase of a block of 18 tenanted flats. The purchase price was £910000 and the flats were providing rental income of £112300 pa.
- A loan for the balance of the purchase price, £535000 was also sourced to enable the client to complete on the purchase and grow his property portfolio thereby significantly increasing his rental income stream.
Second Property investment case study:
- Clients owns a parade of 3 unencumbered retail units, all let on FRI commercial leases.
- We raised a long term investment loan of £250000 over an 8 year term to repay his residential mortgage and provide additional funds to complete the build of a new house for himself & his wife’s retirement.
Re-Banking Cash Flow Facility
Demolition contractors who had been established 14 years:
- £40000 overdraft facility in place with the existing company Bank and previously only very lightly used.
- As a result of the downturn in the property market & construction industry during 2009, profits had reduced and they had become a little more reliant upon the overdraft facility.
- Cashflow forecast through 2010 showed a peak borrowing requirement of £140000 in April 2010 coming back into the black toward the end of the year & continuing in credit during 2011.
- Their order book was full & work in progress had certainly picked up although on paper their aged debtor list was very low.
- We obtained a full re-banking package for them with an initial overdraft limit of £140000 for 6 months, reducing down to £70000 on an ongoing basis.
- Interest rate B +3%. Arrangement fee 1.5%
- Security was a Debenture + Directors PG’s supported by a second charge over their own dwelling house.
Client looking to purchase a Kennel & Cattery business for his wife & daughter to run. He was 50% shareholder in a successful mobility scooter sales company:
- Purchase price £895000 to include goodwill & living accommodation.
- He had already approached his existing company Bank Manager to put a deal together for the purchase.
- We were introduced a number of weeks after his own Bank Manager had started looking at the deal and were asked to put an alternative proposal together.
- £500000 loan agreed within 7 days of first meeting the client, deal signed up and the valuer went out to view the property within another week.
- 15 year loan term, with repayments on a 20 year repayment profile initially to keep monthly commitments down in the first couple of years to ease cashflow.
- Interest rate Base + 2.75%. Arrangement fee 1.5%.
- Everything was completed to the client’s entire satisfaction within 6 weeks of the initial introduction to ourselves.
Client introduced to us after having been let down by their own Bank after having banked with them for almost 40 years:
- Building new commercial warehouse & office premises on their existing site.
- Loan of £1.5m agreed to cover the build costs, drawn in tranches as required.
- End value of the commercial premises was in excess of £3m. 12 month initial interest only period was agreed, to keep costs down during the build phase with an overall loan term of 15 years
Confidential Invoice Discounting
- Client looking to save money by refinancing an existing factoring deal which was put in place quickly 12 months earlier when he was purchasing the business back following an administration.
- £500000 credit limit against the debtor book providing the company significant annual savings which ultimately provided additional bottom line profits by moving the finance to a more cost effective lender.