Commercial Mortgage for Multi Unit Block
Our clients are seasoned developers with an extensive portfolio of large-scale developments. The client specialises in large scale commercial to residential conversions. This project saw the development of 28 units, including the conversion of an old inn to a multi-unit block.
We had previously arranged a large development finance facility for the client to complete the build of the 28 residential units. On completion of the project, 16 of the units were sold, the development loan was repaid and 12 units were retained by the developers.
The client sought to mortgage the remaining 12 units in order to retain as BTL investments. The challenge was that the units were spread between four separate blocks on the site meaning the loan requirement fell outside policy for many lenders. We also had the additional challenge of securing the valuation and funding during the COVID-19 pandemic, when many lenders had paused operations.
Despite the challenges, we were able to structure the deal to secure the required multi-million-pound mortgage. The client was able to take equity out of this scheme for their next project and all 12 units have been let, leaving the client with a profitable addition to their portfolio.