The property financed is a 47-bed student HMO with an adjacent car park, which the client aims to redevelop into a second, 55-bed student HMO.
The first loan of £217,000 was provided by Together at a rate of 1% per month for 12 months, allowing time for the developer to complete the planning application for the additional student block.
The second bridging loan of £1.82m was delivered by Tuscan Capital at 0.75% per month on a nine-month term and completed at 70% of market value and 85% of purchase price.
The second facility was used to purchase the existing HMO and refurbish it, as well as allow the client time to sell the individual properties.
A development loan with Paragon Bank — subject to planning — has been pre-agreed.
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Dan Brown, senior business manager at Commercial Expert (pictured above), said: “HMOs are ordinarily difficult to fund due to their complexity, but the dedication of our team and understanding of individual lender requirements led to a successful deal completion.
“We scoured the market for the best deal around but also had to consider their exit strategy and how this fit with their plans.
“I’m pleased that we were able to secure fantastic rates for the client and the right amount of funding needed.”
Carl Graham, regional director at Tuscan Capital, added: “Having known the team at Commercial Expert for over 15 years now, it was a pleasure to work with Dan on such a complex transaction.
“When deals of this complexity are presented in such a diligent way, it makes arriving at a lending decision all that much quicker.
“I thank Dan for the patient, yet professional way in which he dealt with this case.
“With nervy challenges and delays outside of our control, it was great to see a successful conclusion.”