The traditional slowing down of business in August did not materialise, and alongside the flow of new business we again saw a healthy number of completions, a sample of which are detailed below.
A Fixed Rate Option was an important factor in the majority of deals this month and this certainly remains the case. The remaining four months of the year are set to be extremely busy as the need for business finance increases within the SME sector.
Holiday Let Commercial Loan | £1,500,000
This is the third Property we have refinanced for client to add to his Holiday Let Portfolio.
The client continued to develop the Thoulston Site into high-end Holiday Let. We refinanced at the start of 2021 the Hesdin Hall Project and Pigertons at the end of 2021 and Corn Crib is the next one.
The Corn Crib sleeps 30, which includes 10 ensuite rooms and a large Bunk House. In addition, it has a detached indoor swimming pool and a spa.
With the previous project at Pigertons being funded by YBS, we again engaged with them. Whilst normally their maximum loan for a Holiday Let Property is £1 million, given our client’s background, experience and track record, we were able to secure funding for £1.5 million.
By utilising same funder as with Pigertons, this deal was completed shortly after the property refurbishment was complete.
Commercial Mortgage | £875,000
The commercial property consists of 4 units and 10 suites, which is partially let out and partially owner-occupied.
The Client needed £750K to exit his existing borrowing within the term agreed (20/08).
We obtained a 75% LTV, although the lenders’ cap is 70%, but agreed to push to 75% with 5% amortising over the course of the loan, the remaining 70% staying in place on an interest-only mortgage.
Completed on 19/08, so within the required timescales whilst releasing some additional capital for the client to expand their portfolio.
Unregulated Bridging Loan | £250,000
A Client approached us with 3 newly built residential properties in Abercynon – there was an issue however that the water lines hadn’t been installed / connected properly, and Welsh Water required this to be done before full building regulations were signed off and properties could be sold.
The client required £250k not only to complete the work but also to purchase another property (this purchase was stalled due to the non-sale of these units).
Our team obtained £250,000 net for the client on a standard bridging product rather than a development/partially complete development.
A rate of 0.48% was secured, which was the cheapest on the market from a funder willing to consider this on a standard bridge.
Commercial Mortgage | £219,935
An existing client approached us to assist with the purchase of a semi-commercial property that consisted of a gym on the ground floor and a 6-bed student-let HMO on the upper floor. The fact that the property was split over 3 individual freehold titles was preventing the client from sourcing funding themselves and resulted in a number of funders declining to assist.
By using our connections with Mia House at HTB, we were able to source funding that met the criteria and was comfortable with the multi-freehold titles at cost-effective rates. Funding was secured at 75% LTV, which allowed the client to retain some of their own cash for further projects.
Commercial Mortgage | £182,000
We were approached by our client to assist with the remortgage of a property held within their SPV that was purchased, renovated and ready for occupancy by their trading company. Due to a lack of a relationship with their existing bank, we were approached to source the highest lending amount at the most cost-effective rate.
Using our knowledge of the industry and relationships with the banks, we were able to source funding through Barclays Bank. Due to the client’s business operating in the healthcare sector, the funding was provided at a high loan to value at preferred interest rates.
Asset Finance | £114,560
We were approached by our client to assist with the refinance of their Aston Martin DBS. They received quotes from Aston Martin directly, but due to the recent interest rate increases, the client felt that the rate offered was expensive.
With the use of our network, we were able to source matching funding for the loan amount offered by Aston Martin, but at a lower interest rate.
Buy To Let | £114,220
An existing client was looking to refinance two BTL properties in their personal name following the passing of their wife.
In difficult circumstances, Cornerstone worked closely alongside Fleet Mortgages and David Evans from LG Williams & Pritchard solicitors to make the process as seamless as possible.