Background: Lendhub were approached regarding the demolition and development of a commercial office building and were immediately keen to assist the developer. The borrower required funds to refinance their existing bank, refund sunk costs already incurred and 100% of the construction costs.
Location: South West London
Product: Stretched Senior
Term: 14 Months
Exit Strategy: Sale of property
Valuation: £2,500,000
Total Facility: £4,556,000
LTV: 72% Net Initial Day One, 100% of Development Costs
LTGDV: 70% LTGDV
LTC: 85%
Interest Rate: 0.85% per month
Gross Development: £6,508,000
Quirks: The project was larger than all the previous the developer had completed to date and it was a relatively complex development with a ground-up element and numerous party wall awards to consider. High LTC and equity release of sunk costs.
Challenges that arose prior to completion: The residual valuation was lower than expected moving from £3,100,000 to £2,500,00 which resulted in an increase in the day one LTV from 60% to 72%.
Why we funded it: Despite the high leverage and borrower's inexperience undertaking similar schemes, lendhub were able to gain comfort from the borrower's professional team and their ability to secure a pre-let agreement to lease the site upon completion.
Time to completion: 76 days
Location: Reading
Product: Auction
Term: 6 Months
Exit Strategy: Refinance
Total Facility: £311,250
Valuation: £415,000
LTV: 75%
Interest Rate: 0.85% per month
Quirks:The borrower was undertaking a programme of refurbishment works to the property. The security property was being altered however the borrower wanted to fund these works themselves without monitoring from Lendhub.
Problems that arose prior to completion: Upon receipt of the independent valuation report, it was indicated that the property was potentially at risk from structural damage. We instructed a structural engineer the same day to assess the property and verify the severity of the cracked walls.
Why we funded it: After speaking with the developer and understanding the nature of the proposed works and the professional team instructed to implement the works, we were able to gain comfort that the works would be done to a satisfactory standard allowing a smooth transition onto a long term HMO mortgage.
Time to completion: 14 working Days
Background: One of our introducers approached us, looking to assist his client in obtaining finance for the acquisition and development of a property they had exchanged on, with a delayed completion date. The borrowers were using the delayed completion to secure non-contentious planning amendments that would increase the square footage of the property by 25%. The borrowers were looking to leverage the equity as much as possible.
Location: West London
Product: Heavy Refurbishment
Term: 12 Months
Exit Strategy: Sale of the Property
Initial Facility: £715,000
Total Facility: £1,102,000
Initial Valuation: £892,000
GDV: £1,700,000
LTV: 72% + Interest Rolled
LTGDV: 65%
Interest Rate: 0.85 % per month
Quirks: The bulk of the equity provided by the borrowers was through 3rd party preferred equity, meaning that the borrowers had a small amount of “skin in the game”
Why we funded it: Despite significant hurt money in the scheme, we were comfortable with the borrowers experience and ability to deliver the proposed scheme in the intended timeframes.
Time to completion: 18 working Days
Background: Our experienced developer required a bridging loan to assist with an opportunistic purchase of a freehold building containing 10 flats. The purchase price was considerably below the market value of the property due to the urgency the vendor needed to dispose of the property. Lendhub were asked to lend against the Market Value of the property, to minimise the equity input from the borrower.
Location: South East London
Product: Residential Bridge
Term: 6 Months
Exit Strategy: Refinance with BTL mortgage
Total Facility: £2,762,000
Valuation: £3,750,000
Purchase Price: £3,075,000
LTV: 73.6%
LTP: 90%
Interest Rate: 1.15 % per month
Quirks: Most lenders would only lend against the purchase price, however the borrower needed to borrow against the market value before they could refinance into a BTL mortgage.
We agreed to lend against the aggregate value of the individual flats, as opposed to the block value.
Problems that arose prior to completion: We instructed an independent valuation of the property, and this was returned at a price which we did not think was right. We instructed a second, reputable firm to carry out the valuation and this resulted in a higher figure.
Why we funded it: We were confident that the borrower had found a unique opportunity to purchase the property at a genuine discount.
Time to completion: 21 working days
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