Additional security enables £2.6m funding
An experienced London based developer, who already owned the freehold to a block of flats in North London and a number of leasehold flats within the block, had worked up a scheme to add a contemporary new build wing of 5 large, lateral 3 bedroom flats.
Having successfully obtained planning consent early last year the client was looking for assistance to undertake the construction works to deliver high specification apartments with private balconies, air-conditioning and underground car parking. The client has appointed a third party contractor on a fixed price JCT.
United Trust Bank provided a facility of £2.6m to enable the client to repay the existing first mortgage over the property, construction costs and professional fees.
In order to remain within our required LTV the client provided make-weight security over the leases of unencumbered flats within their property portfolio.
Loan – £2.6m
LTV – 51%