Our client came to us to find a funding solution for two of their semi commercial properties in Merthyr Tydfil, which they were in the process of converting into 17 residential flats. The client already had 2 existing lenders, but neither of the existing lenders wanted to renew the facility as the properties were being transferred into this property company, and this meant that our client was under some pressure to get a funding solution in time.
This was a highly complex deal that faced a number of issues; some of the flats were still being completed and awaiting tenants, the commercial unit closed down due to the pandemic, and the client also faced some planning issues. Moreover, there was another complication with a previous grant provided by Local Authority (LA), which was repayable on sale (in first 5 years). Initially the LA stated that the grant was not transferable to the property company and this could have caused the collapse of the funding package leaving client in a precarious position.
By working closely with the solicitors and funders involved, as well as the LA, our team at Cornerstone Commercial Finance were able to help our client overcome these matters. With Support of Andrew Arnold at Cambridge & Counties and Clare Day at HCR Solicitors, supported by Steve Cridland at Azets who introduced client to us, we managed to get the deal over the line. Our client has now secured a £690,000 commercial loan to fund their project, and to help with future developments.