Transforming a Single-Unit Asset: Strategic Funding for a High-End Essex Development

Funding

GDV, £5,750,000

LTGDV 65%

Day one advance to refinance current lender

Rate 9.96% pa – no exit fee

About the deal

Location: Essex

Single unit asset extension and new build

increase current sqft by 3 times to 10000 sqft

After months of the client trying to fund this project they approached PSF to arrange mezzanine on the shortfall. On review of the deal and fully understand the requirement, with the client consent we packed the deal as a whole loan and presented to a small panel who we knew had an understanding and desire for large single units in what was a strong market.

The Challenge

Initially, gaining a funder to fully get comfortable with the leverage requirement against a single unit was tricky but giving a insight into compatibles and lack of properties in the area coming for sale showed the demand. This linked with a large part of the build utilising the current structure with the client working with an experienced local builder he had worked with before keeping the cost budget manageable

The Results

We worked closely with the client’s professionals and the lenders experience team overcome hurdles that arose. this included an inital reduction in the dayone advance due to valuation and challenges on the clients build costs against the banks surveyor. With the opportunity to have a great relationship relationship with the owners at the lender we managed to move the loan outside of normal lending parameters to make the funding work and provided the day one required and a build facility of £1.9m

Key Features (Upon Completion)

– 6 en-suite bedrooms, plus 2 convertible store rooms
– Grand master suite with his and hers dressing rooms and ensuites
– Extensive living space including games room, study, utility, pantry, laundry room, and plant room
– Premium layout with boot room, large hallway, 2 downstairs WCs, and a double garage
– Detached 2,200 sq ft pool house
– Pool House Consists of 2200 square feet of Entertainment Space Creating a South West Facing Pool House Facility , Perfect for Summer Entertainment but also big enough for indoor Entertainment all year round.