The LRI3 loan at 75% LTV was required to convert two adjoining three-storey terraced houses in Croydon into eight self-contained flats, with four apartments in each.
Once the first property was complete, the borrower hoped to refinance and raise further funds to finish the works on the adjoining property and also start a new project.
In order to facilitate this, Shawbrook arranged with its in-house solicitors to create separate leases on the four completed flats rather than dividing them at sale.
It was found that all eight flats could be sold within 12 months if sold individually.
Shawbrook’s commercial teams sanctioned a loan that exceeded the original purchase price and cost of works, while the underwriting team used the financials from the original deal to keep conditions to a minimum.
As such, the loan was completed in an agreeable timescale to all parties.
The deal was brokered by Max Mace from NM Finance.
“The end result of this complicated transaction is a very satisfied client, who is eager to work again with Shawbrook on future projects,” Max revealed.
“With the initial loan competing very quickly, thereby enabling the required capital [to be raised] to complete the works on the second property, my client is thrilled with the expert level of service they received.”
Last month, Shawbrook completed an urgent £1.48m bridging refinance to save an investor who needed funds immediately.
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