The purpose of the facility was to refinance the existing £310k first charge and capital raise to develop out the property.
Initially the secured property had five 1 bedroom flats which the borrower intended to convert for added value into 3 large flats with a projected GDV of £1.375m. The total facility value was £560k which was 70% of the £800k Market value.
With build costs estimated at between £160-£190k and a very short 3-4 month build period, century were keen to run with the deal.
Once converted the borrower intended to either refinance on a Buy to Let in full or sell one asset and refinance the other two. With a GDV of 54% and a minimal build time we felt this would diversify our portfolio nicely.