Deal Round-Up September 2021

After the summer break our commercial team are back in full swing with a range of asset finance, buy-to-let, secured loan, development, and commercial mortgage deals completed throughout September.

Development Finance | £770,000

Our client, who we previously supported with a commercial bridging loan to purchase two large multi-storey commercial units, returned to us for our assistance on their conversion plans.

Since purchasing the two properties, our client obtained full planning permission to convert the two commercial units into 12 residential apartments and two ground floor retail units.

Through our strong working relationship with B&W Bridging, we secured funding for the large-scale development at a competitive rate of 0.89% over a 12-month term. This funding will repay the existing facilities in full and fund all costs associated with the conversion.

When the conversion has been completed and signed off, their satisfaction with our service will see our client return to us once again to refinance units onto a semi-commercial mortgage.

Bridging Loan | £140,000

The client had an existing bridging loan taken out to purchase a property and carry out refurbishments. Unfortunately, due to the pandemic, the renovations were not set to be completed within the time frame of the initial bridging loan.

With the existing bridging loan expiring within five weeks, the client faced large fees if the loan was not redeemed within the time limit.

To ensure the client could pay off their existing bridging loan while having the funds to refurbish the property to a mortgageable position, our team sourced a 12-month £140,000 bridging loan within three weeks.

The new bridging loan was approved without any valuation, speeding up the process for the client while keeping their costs down. Thanks to our team’s quick turnaround, the client is now free from the previous bridging loan.

Our team’s prompt turnaround left the client free of the previous bridging loan and increased the time and funds to finish the refurbishments that will turn the property into a long-term buy-to-let.

Semi-Commercial Mortgage | £135,000

A first-time landlord came to us looking to purchase the freehold property that their family’s convenience shop trades from, with a flat located above.

With the property priced at £250,000, we secured the client a 10-year 55% LTV semi-commercial mortgage with Together Money on an interest-only basis. This enabled the client to save money on monthly costs while making a profit through renting the flat above.

The client now pays £786 in mortgage payments compared to their last rental fee of £1500 and benefits from £600 in rental income.

Secured Loan (Second Charge) | £83,262

We helped an existing client refinance their home and raise capital for an extensive refurbishment throughout the property.

Following a review of their existing mortgage, we recognised they had an expensive early repayment charge. Having identified the need for a secured loan to run in junction with their first mortgage, we also established the client had existing unsecured commitments that amounted to £812 per calendar month.

We secured the client a 12-year second charge secured loan with United Trust Bank to repay their unsecured liabilities and raise an additional £55,000, all for £760 per month.

The client was delighted with our service, having now repaid their unsecured credit, refurbished their house and paying less per month than they previously were.

Asset Finance | £57,202.80

A repeating client returned to us looking to purchase two flat-bed trailers through asset finance.

Due to their working relationship with their supplier, the client was required to purchase the trailers themselves, with the funding then put in place retrospectively.

Thanks to both our clients and the Cornerstone Commercial Finance team’s working relationship with Lloyds Bank, we were able to put a Sale and Hire Purchase back funding agreement in place. This enabled the client to put the two trailers that they recently purchased on a hire purchase facility.

Despite our client encountering challenges regarding proof of delivery for the funds to be released, our team negotiated alternative confirmation to ensure the funds were accessible within the set time frame.