Funds for Conversion of a Semi-Commercial Property
The client was purchasing a prominent semi-commercial property located in Folkstone, Kent. Funding was required quickly in order to refurbish and renovate the property into eight residential units. The property was in a poor internal condition and in need of heavy refurbishment. Lowry Capital provided an initial loan of £170,000 against an OMV of £340,000. Once the renovation program is complete the expected GDV is in excess of £800k. Buy to let refinance will ensure that the loan is repaid at the end of the term.
This is likely to be a 12-month project for the client, which after all the works have been completed and project costs paid, is estimated to result in a net profit of circa £200,000. As well as the capital appreciation, the client will refinance onto long term finance, generating a strong rental income.