Commercial to residential conversion of a five storey property in Essex

Our broker’s client was a first-time developer looking to purchase a five-storey commercial property. Full planning permission was already in place to convert the upper floors into two apartments.

The developer was working with an experienced contractor and had a clear plan for the development. Once completed, the exit strategy was to refinance the property, supported by a strong GDV.

QUICK LOAN OVERVIEW 
🏠 Max Gross Loan: £847,000
🏠 LTGDV: 70%
🏠 Commercial-to-residential
🏠 12-month term
🏠 Exit strategy: Refinance

Gareth Colston, Senior Internal BDM, commented: “We were able to fund this without any previous experience from the borrower, as they were using an experienced contractor to complete the works. The deal makes sense as they have a strong GDV with great rental potential once converted.

There were a few challenges as we progressed so a massive shout out to our underwriter Martyn and our broker who were always working together to progress this deal to completion in good time.”

Martyn Balsom, Risk and Audit Analyst, added: “This was a fairly complex case, however, good communication between all parties helped this complete before the original valuation expired.”

Gemma Roberts, BDM: North, added: “The deal showcases Catalyst’s appetite for commercial-to-residential conversions. Through a collaborative and proactive approach between the broker and the Catalyst team, we were able to successfully fund the deal.” 

For more information on our moderate refurb loans, click here.