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.”