Client: A property consultant seeking full ownership of a residential development company.
Purpose of Loan: To fund the acquisition of 100% shares in a development company following completion of a residential scheme.
Loan Summary:
- Loan Amount: £440,000 (Net advance: £403,920)
- Term: 12 months (3 months interest retained)
- Security: 1st legal charge over a 4-bed home; Debentures; Personal guarantee
- LTV: 62.86% Gross (on MV), 69.84% Gross (on 90-day value)
Challenges:
- Refinance and share purchase combined
- Security property tenanted by borrower
- Target company had limited post-development financials
Outcome:
- Full ownership transfer and refinance completed
- Strong exit via BTL refinance
- Interest retained structure enabled smooth cashflow
Added Value: Enabled timely acquisition and ownership consolidation.
