From one Buy to Let house to 9 new apartments
Full planning permission had recently been obtained for its’ demolition and replacement with a block of 9 apartments over three floors with underground parking. The applicants were experienced local developers and there was a proven demand for the accommodation proposed so the Bank was able to offer a facility of £ 1.41m based on 60% of the projected £2.35m GDV. during the course of due diligence, notice was served on the tenants and upon vacant possession the applicants were able to demolish and commence ground works prior to winter setting in.
The facility was arranged to clear the existing Buy to Let mortgage and then fund 100% of the build costs, interest capitalisation and fees for a 15 month term.
The first certificate has been received and good progress is being made.