Experienced developer converts commercial property to residential
Experienced developer converts commercial property to residential
𝗤𝗨𝗜𝗖𝗞 𝗟𝗢𝗔𝗡 𝗢𝗩𝗘𝗥𝗩𝗜𝗘𝗪
- Experienced Borrower
- Commercial Property Purchased
- Planning Permission Granted to Convert to Residential
- £1,200,000 loan agreed
- 12-month term
- 100% of works funded in arrears
Borrower’s Requirements: An experienced borrower who previously worked as a QS for large house builders, started some SME projects for himself. The client originally purchased a commercial property (an old bank) via a bridging loan, using one of his Buy To Let’s to raise 100% of the purchase. The original bridge was to give them time to explore planning to convert to residential. The client obtained planning permission to convert the commercial asset into 4 apartments.
Catalyst Solution: Catalyst provided a loan to assist the client in lifting out of the original purchase bridge clean, as well as providing additional funds on day 1 to get the works underway, along with 100% of works funded in arrears. No additional cash input or security was required from the borrower. In fact, we were able to release additional funds on day 1 of the loan to cover some of the borrower’s expenses and to get the build underway.
Sam Shand, Senior Internal BDM says “The Catalyst team faced various challenges; from ensuring we were comfortable with an additional security right next to a petrol station, to checking that removal of the old vault had been taken into account with the build cost. We provided a £1.2m loan for 12 months at 0.85% pcm fixed. £600k was to redeem the existing lender, £100k extra on day 1 to cover costs/get works underway, with the rest funded in arrears to finish the conversion.”
![ernys-EO_KlX-A6SY-unsplash (1) brick building with many windows](https://catalystpf.co.uk/wp-content/uploads/2024/06/ernys-EO_KlX-A6SY-unsplash-1.jpg)