Conversion Project

Conversion

Description

An established customer had purchased an office building in Hackney. The property was acquired with the benefit of planning permission for 6 flats. As the borrower was a “repeat customer”, he approached us in advance to discuss the project. We assessed the plans and costings with him at our office and we were able to structure a deal to suit his needs. We also referred him to our “in house” planning consultant to help him with the possible enhancement of the existing permission.

Having completed similar projects with us in the past, he had exchanged on the property on the basis of a verbal “ok” following our meeting. Funds were secured for completion within 10 working days as well as for the project works.

The project was monitored by Silverstream’s Q.S. and funds were released by means of stage payments.

  
During the course of the loan, our customer did obtain a further planning permission to build an additional apartment in the roof space. Following a site visit with our QS, we agreed to release extra capital for the additional works as well extend the loan. 
  

Once completed, the first unit that sold was a 1 bedroomed ground floor flat in the sum of £400,000. During this time, our customer had secured a contract for another project and required some additional funds to exchange. We agreed to limit our request from the sale proceeds to £300,000, so that our customer could retain and use the balance to exchange contracts on the purchase of the new property. 
  

Terms

CLIENT
T. Costas
ROLE
Property Investor
PURCHASE PRICE / "AUCTION" VALUE
£1,500,000
LOAN
£950,000
LTV
63%
TERM
11 Months

Additonal Terms

ENHANCED RESIDUAL VALUE
£1,800,000
ENHANCED LOAN
£200,000 (total £1,150,000)
LTV
64%
ADDITIONAL TERM
3 months (so 14 months in total) 
ADDITIONAL FUNDING FOR PENTHOUSE
£150,000
END VALUE OF PENTHOUSE
£650,000
TOTAL END VALUE
£3,350,000
“ The Silverstream team has extensive property investment and development experience which means that they can think and act like property developers. They understand property and are able to provide a “stress free value added” service to my company.
—  T. Costas
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