Julian King

Arc & Co and Century Capital complete £2.1m refurbishment bridging loan for prime Surrey property

Arc & Co and Century Capital have delivered a £2.1m residential refurbishment bridging loan for a 7,000 sq ft prime residential property in Surrey.

Located on eight acres of Surrey countryside, the property has a GDV of £5m.

The client had acquired the property two years prior, during which time he had worked up planning consent, and required funds to repay an existing mortgage and commence the refurbishment.

With the facility, the borrower aims to restore the property to its original features and improve its size by adding a large kitchen extension and significantly increase the floorspace.

The facility was agreed at 1% per month interest rate on a 12-month term.

The loan is set against 65% LTV, which will decrease as the work unfolds on site. 

At practical completion, the LTV will fall to 42%, which was one of the contributing factors to funding this project.

The transaction was a challenging one, with multiple titles and unregistered parcels of land causing issues within the conveyancing process.

Paul Munford, CEO at Century Capital, said: "There was some significant complexity in that the planning consent was to be revised part-way through the build to allow for further expansion of the dwelling, as well as additional legal and valuation difficulties arising from a pre-completion title split, and the involvement of a JV partner of the borrower. 

“Our experienced team were able to work extensively with both the client and broker to overcome these issues, taking common-sense views where necessary and working around the clock to meet tight deadlines for completion."

Luke Navin, head of lending at Century Capital, added: “We were delighted to get this complex loan over the line. 

“Julian King [asset finance adviser at Arc & Co] was on top of the deal from start to finish, from the initial site visit, to the myriad of complex legal and planning issues, with his dedication to the deal ensuring a quick and easy completion for his client.”

Julian (pictured above) commented: “I’m hugely grateful to both Luke and John Wheeler [head of sales at Century Capital] for their diligent, patient and flexible approach in supporting the funding of this unique property. 

“Their knowledge in this sector enabled them to provide the solution my client was looking for and enable an immediate start on site.”

Leave a comment