Auction purchase to convert mixed use property into fully residential

An experienced property developer in Richmond successfully won an auction bid to purchase a mixed use property in the area and convert it into fully residential use. 

The client agreed to purchase the property for £3,000,000 and under the terms of the contract had just under two months to complete the acquisition.

Without access to all the necessary funds, the client looked for a short-term financing solution to bridge the capital shortfall. West One was approached by the client’s broker searching for a loan.

We were comfortable working with the borrower, who had carried out similar projects in the past. All the relevant checks and necessary due diligence were carried out and West One lent the borrower £2,100,000 at a rate of 1.20% a month, for a period of 12 months.

Result

The borrower was able to purchase the property within the contractual time and use the 12 month period to arrange a suitable refinancing facility.