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Case study 3

Product: First charge development loan

Security: Commercial property in West London

Gross Loan: £1,900,000

LTV: 54.10%

Term: 18 months

Borrower Type: Individual

Purpose: The loan enabled the client to redevelop an existing commercial unit into nine four-bedroom mews houses in West London.

Exit: Sale of developed properties once complete

Key points:

  • The planning permission for conversion into residential houses was already in place at the time of completion.
  • Development money was released in tranches upon receipt of satisfactory independent monitoring surveyor’s reports.
  • Borrower had cost overruns so we lent a small additional amount to cover this.