United Trust Bank (UTB) Property Development was approached by an experienced developer to assist with the purchase of an owner-occupied office building which is subject to a Property Overage Agreement with planning for conversion to 42 apartments under permitted development rights. Once acquired, the purchaser intended to enhance the scheme by proposing the creation of 18 additional units via a two-storey airspace development. If successful, the GDV would increase from around £21m to £32m.
UTB agreed a loan facility to acquire the property which included £7m towards the purchase price plus fees and rolled up interest during the bridging phase. The balance of funds required to complete the acquisition were provided by Iron Bridge Finance and a cash injection by the customer.
Although indications were that an enhanced scheme would be approved by the local authority, if the enhanced planning application is unsuccessful, the borrower will build out the scheme already permitted to create 42 one-bedroom apartments with a GDV of £21m with UTB agreeing to provide the funding to complete the development either way.
| Borrower | Entrepreneurial Developer |
| Amount | £7m |
| Loan Type | Acquisition Finance Loan |
| LTV | 60% |
| Term | 12 month terms |
| Location | London |
| Loan Purpose | Security over an Owner-Occupied building which is subject to a Property Overage Agreement |
| Special Feature | New to Bank customer Airspace Development potential |