Case study 2

1st charge loan secured against the hope value of a mixed-use scheme.

LOAN AMOUNT: £650,000

LTV: 84.99%

The borrower was a UK development company looking for a loan to fund the purchase and planning cost of a mixed-use building in South West London, to allow the site to be converted from mixed use to residential.

And external planning opinion was sought based on the borrowers proposed scheme. The planning opinion was positive subject to some minor amendments, and hence it was a condition of the loan that the recommendations of the planning opinion be followed, in order to maximise the possibility of obtaining planning.

As such, Pivot were happy to lend up to 85% of current value and 65% of hope value. Evidence of development finance as exit was provided prior to completion and personal guarantees were taken from the company shareholders, and a debenture was taken over the company.