July 5th, 2019. Luke Egan
Deal of the Month July 2019: Finance Without Approved Change of Use
Sometimes, at no fault of your own, timings can be off. Finance may fall through, plans may not get approved immediately, or there simply may be a bureaucracy backlog. However, don’t let that hold you and your project back.
This was the case for one of our clients. Despite difficulties caused by change of use on a property not yet being approved, we were able to secure them funds, making this our Deal of the Month.
About the Deal
Our client came to us after purchasing a formers doctor surgery which they wanted to redevelop. They had already tried working with two competitors of ours, who had not been successful in getting them what they wanted, so came to us.
The client had also already been in talks with and negotiated for a nationwide takeaway and funeral care company to become tenants of the redeveloped property. However, they didn’t have the appropriate change of use. Therefore, we were tasked with finding more than £400,000 at 70% of the purchase price from a lender who would hold the application until the change of use was secured. Something we managed in just a few short weeks.
Our expert team were able to secure a deal based on the covenants of the new tenants, but terms changed slightly when we were due to complete. However, we were able to convince the lender that we would still be able to arrange refinance and the deal was successful.
Our client now has a bridging loan in place and we will soon be arranging commercial exit finance for them too.
Do You Require Finance in an Out-of-the-Norm Situation?
If you require commercial finance but are struggling to secure funds on the high street, speak to our experienced specialist brokers. We specialise in building personalised property finance deals that are tailored to your needs and lenders’ criteria. Get in touch today to see how we can help you.
Article By Luke Egan
July 5th, 2019
Luke heads up our specialist property finance team where his focus is to drive our transactions valued between £100k and £5m.
Luke and his team manage enquiries from initial enquiry through to redemption. Luke also sits on the internal credit committee with Ben and Tom.
Luke joined Pure back in 2014 following a successful role in the Barclays property finance team that lasted over 8 years.See more articles by Luke