The facility was provided against the existing value of the property of £363,000 (at 65% LTV), subject to a completed value of £400,000 and a reduced LTV of 59% prior to exit onto a BTL mortgage.
The case was brought to the specialist lender by Complete FS.
The loan will be used to uplift an existing private loan and fund the completion of the conversion works, after an alternative lender pulled its offer at the eleventh hour, which put the developer under time pressure.
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Tony Gilbertson, CEO at Signature Property Finance (pictured above), said: “Here at Signature, we have a deep and genuine understanding of the property market and the way it is changing, which needs committed alternative lenders to step up and support developers with vision.”
He added that Signature Property Finance was expecting to receive more applications for short-term property finance to fund their purchase and conversion to homes, given the growing number of empty offices and shops made worse by the pandemic.