978 Finance – Example Case Studies

Below are some examples of the previous work we have carried out at 978 Finance for our clients across the UK.

If you would like to find out more about property finance, please do not hesitate to contact us in Lancaster, Lancashire on 01524 889978.

978 Finance – Example Case Studies

Below are some examples of the previous work we have carried out at 978 Finance for our clients across the UK.

If you would like to find out more about property finance, please do not hesitate to contact us in Lancaster, Lancashire on 01524 889978.

45 Bed HMO Conversion

978 Finance completed back-to-back bridges to secure a deal on a Care Home Conversion into a 45-bed HMO (house of multiple occupancy).

Our client Claire approached us a week prior to auction. She had already been to other brokers and lenders looking for assistance, however they could not facilitate a bridge for the acquisition of a care home. This was primarily down to the fact that there was a lack of planning for the conversion of this property into a 45 bed HMO.

Although, 978 Finance secured suitable outline terms within a matter of hours. An offer from a lender was made to vary out a valuation prior to the auction. This was all done within a 24 hour turnaround period, with the valuation offering extra security for the client. The lender also attended the auction and our client was able to secure the winning bid of £366,000. Minutes later a formal offer letter was produced and legals instructed.

Claire, a property entrepreneur, was also compiling the acquisition of a smaller property for conversion into a 5/6 bed. However, a delay was caused due to lack of communication from Lloyd’s Bank regarding a debenture. This meant that the care home deposit money had to be used to secure the smaller property.

After liaising with Lloyds Bank and the bridging lenders, our Managing Director Simon Das was able to obtain a verbal agreement that a letter of non-crystallisation would be sufficient in allowing the bridging lender to take the first charge and for the debenture to be put I place at a later date. As a result, back-to-back bridges were arranged so the deposit money could be release in a couple of hours and the purchase of the care home completed.

The client is progressing with the planning process for conversion and planned to start converting the smaller property straight away. In reflection on the deal, Claire said: “I approached 978 Finance after other brokers and lenders could not provide what I needed for my upcoming project. It was a tricky deal with big time pressures, but the guys just got on with it.

“The team provided an excellent service. Lee (BDM) was efficient and hard-working, working out of hours if needed and Simon was readily available to provide support when necessary. I was impressed by how swiftly suitable terms were put in place and communication was prompt and clear throughout. I would definitely recommend the business and look forward to working with 978 in the future.”

Simon, our Managing Director, also added: “It was great to work with an astute and driven client and ensure she could pursue her current ambitions.”

Penthouse Acquisition on the Isle of Dogs

The 978 Finance team always aim to go above and beyond, providing an excellent service for all clients. This was provided in our involvement with a deal securing the acquisition of a penthouse on the Isle of Dogs.

The client, H. James, contacted on a Sunday afternoon to pursue 100% funding for the acquisition of a half a million-pound penthouse on the Isle of Dogs in London. This is an exclusive area of the capital city and sits alongside the Canary Wharf skyline. The previous owner had unfortunately fallen into arrears on his mortgage and was facing repossession.

With a quick turnaround time, 978 placed suitable terms into place by 8am the following morning. The next day it progressed to a valuation and legals. On the open market the penthouse was valued at £550k, however it was secured for £330k due to the seller’s financial position. Our team were able to provide 100% of the purchase price with a 6-month bridging loan. The client paid for the valuation and legal fees, coming to a total of £3,000.

Managing Director Simon said the following about the deal: “This was a tricky deal due to the nature of the sale and various issues with the leases, but it was a real pleasure to get it across the line. Now we look forward to helping with the refinance and getting a competitive BTL product.”

The client also added that 978 Finance “have excellent knowledge and connections in the finance world” and that it “is apparent from the manner in which they interact between parties”. They were left feeling like they were in “excellent hands” at all times.

The Bank Job!

Our client, Paul S has been working with 978 Finance for well over a year now collaborating on multiple projects together. We were really happy to get The Bank Job loan completed just before Christmas after many twists and turns.

The old HSBC building had been acquired back in 2018 but due to other ongoing developments sat largely untouched through 2019. The team at 978 Finance were asked to raise money against the asset in order to convert the property into a number of apartments keeping some commercial space  on the ground floor. Although a great project, it is not seen by many lenders as such. Ultimately the end values are not brilliant in comparison to the cost of refurbishment as the site is located in a small town in Cumbria with lower than national average sale prices.

This made it difficult for a lot of lenders to get comfortable. The developer is more than happy as the strategy here is to hold long term for income generation and yields here are great.

They do need to see a big profit in terms of flipping as that is not the plan here and is not part of their overall strategy. Whilst the majority of lenders were offering rates of 1%pcm or more due to its location and GDV and not offering enough money to complete the project, we used our solid relationships to ensure we could get the necessary monies at 0.75%.  We also managed to save on QS fees by getting our chosen lender to utilise their refurb product saving around £4000.00 on additional potential draw downs.

Paul said “Thank goodness we are finally moving on our bank job! This was far from straightforward but 978 Finance went above and beyond even managing to complete the deal after the industry had broken up for the Christmas break. We loved the levels of personal service and the unbiased advice throughout. Nothing was too much trouble and although the deal took a long time with changes along the way the team adapted and put in 100% energy right up until close. We’re back on site and looking forward to providing some more much needed high-quality housing for our local residents”.

Due to the low GDV we worked with our lender to get comfortable by taking security over a second asset which we will refinance onto a BTL in due course without any early repayment charges. This was a complicated deal but working with an experienced, professional client ensured it was a pleasure throughout. Looking forward to seeing it progress over the coming months!

£1,000,000 Commercial Mortgage for Bankrupt Client

Our client, Lee came to us in a bit of a dilemma due to his property investment career taking a massive tumble a couple of years ago. He was experienced in Planning Gain, Automotive Commercial Property, and Residential Property but unfortunately, due to some exceptional circumstances and some poor communication within HMRC, Lee was made bankrupt.

This obviously had a huge impact on his life and career. He came to us understanding the versatility of our offering, the fact that we do love a challenge and do not count failure as an option. Although eventually the bankruptcy was annulled, there were lasting detrimental impacts to Lee’s credit profile. A number of banks had recorded defaults when his accounts were taken control of and a string of issues followed.

The need was for acquisition of commercial property, including office space and a car forecourt, and to release some equity from assets already owned, including light industrial and residential property. He was looking for a term loan but would have accepted a 12 month bridge whilst more credit repair work took place. Initially we were looking for an independent, niche lender who could take a view on the whole situation with various credit repair issues still rearing their head.

We spent months working with Lee and managed to create a really solid case for lending whilst supporting his financial adviser credit repair work after many twists and turns we actually felt that a 20-25 year term loan could be obtained and set about negotiating with some of our more mainstream lenders. Through tenacity and solid relationships with decision makers we finally got an approval in principal from a more recognisable institution, however as we progressed, the COVID-19 pandemic began and the landscape changed considerably.

It took a lot of negotiation and hard work from all parties. Surveyors made exceptional efforts to carry out their instructions safely during the midst of the pandemic. Solicitors worked via video call to get the Know Your Client (KYC) process completed, observing social distancing all the while, and the bank held the door open to get the deal complete despite the fact that they had reduced appetite for lending. This was a massive team effort and with support from our engaged partners we got there, finally completing the deal in Early June. Lee is now negotiating on a number of other acquisitions and his credit is improving massively with the backing of our institution.

Loan details:

  • 65% LTV, Variable
  • 5% above base
  • 25 Year Term
  • Capital and Interest

Congratulations to Lee and thank you to all involved.

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