Our client purchased 6 one bedroom flats and a trading coffee shop.
They were all on one title for £1,100,000, but the On Market Value was estimated at £1,510,000. We lent our client 80% of the On Market Value which was equal to 100% of the purchase price of £1,100,000.
A full refurbishment of the flats took place over a period of 6 months by the client and his regular builder. Converting all one bedroom flats to two bedrooms. These were split, and new leases acquired for all, as well as obtaining a longer lease for the coffee shop.
Once the refurbishment was completed, the On Market Value had more than doubled to £2,300,000 which enabled our client to refinance on a long term basis to repay our loan and release the equity for the next project.