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Case study 2

Product:  First charge loan secured against a mixed-use scheme

Security: Shop with 2 residential units above in North London

Gross Loan: £1,350,000

LTV: 61.36%

Term: 8 months

Borrower Type: Individual

Purpose: The loan was used to purchase a shop with residential units above. The borrower wanted to apply for planning permission to extend and increase the number of residential units.

Exit: Development finance once planning had been accepted

Key Points:

  • An external planning opinion was sought based on the borrowers proposed scheme. The planning opinion was positive, subjective to some minor adjustments.
  • It was a condition of the loan that the recommendations of the planning opinion be followed, to maximise the possibility of obtaining planning permission.
  • Evidence of development finance was provided prior to completion.