Sirius Property Finance

Sirius secures £6.6m development loan for HMO scheme

Sirius Property Finance has secured a £6.6m development loan for a client looking to acquire and convert 10 properties into HMOs.

As the units had already been pre-sold to a large investment fund, this enabled the broker to structure a bespoke facility at a rate of 7% over an 18-month term, which covered 87% of the purchase price on day one and the entire build cost.

Following the success of this deal, the lender also set aside £60m to help fund the client’s next development, which will be structured on a similar basis with a pre-sale agreed with an investment fund. 

In addition, a further two lenders have expressed interest in agreeing terms with the client.

Luke Casey, associate for structured finance at Sirius Property Finance (pictured above), said: “It was clear from the outset that this case would require bespoke terms outside of standard lender policy, so we took the approach of interviewing lenders we thought might be interested, to ascertain which would be most suitable for the deal, which certainly worked.

“Not only were we able to secure a £6.6m loan, with the client putting just 13% into the deal, but we also secured very competitive rates and we were able to progress the staged payments without the need for formal quantity surveyor inspections. 

“On top of this we have agreed future funding for the client and have additional options with alternative lenders for the future.

“It’s exactly this type of case that requires a considered and inventive approach, where Sirius excels and it has resulted in great outcomes for both the client and the lender.”

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