Funding for the Purchase of Listed Building Below Market Value
A property developer had identified a fantastic opportunity to purchase a large, listed residential home with impressive views over the Clyde Estuary on the West Coast of Scotland.
We were approached by Jason at Developer Money Market to assist the client to purchase the property in order to fully renovate and add to his BTL portfolio. The property was a former YMCA Youth Hostel and had been left vacant for some years. The client had negotiated a fantastic purchase price at a significant discount. As the property was such a lucrative buying opportunity, the client was keen to complete quickly.
Developer Money Market’s portal had intelligently identified Lowry Capital as the perfect lender for this transaction due to the location and building type. Due to the discount negotiated, we were able to provide a loan of 82% of the purchase price. It is expected that after a comprehensive refurbishment, the property will be worth over £1m which will conservatively generate a profit of over £300,000.
Developer Money Market was approached by a client to assist with a funding requirement in order to acquire and refurbish a large detached Victorian house previously used as a youth hostel back to a lovely family home.
There are a number of providers of bridge funding in Scotland. On this occasion the client's lender of choice was Lowry Capital. This was for a number of reasons including:
- Lowry Capital's willingness to consider the location of the property, many lenders felt it was too remote
- Their ability to be able to provide a bridge loan with refurbishment facility
- The flexibility with how they calculated their loan to value. In this instance they were prepared to use the real market value of the subject site rather than the undervalue purchase price.
As well as offering the benefits above when it came to completing the funding Lowry Capital were very quick and efficient. Developer Money Market would like to take this opportunity to thank Chris Fortune and his colleagues at Lowry Capital for their professional and efficient approach to the project and we look forward to working with the team on the next opportunity. If you are looking for a flexible funder in Scotland we highly recommend Lowry Capital.
Jason Dempsey, Developer Money Market