To refinance a newly completed residential development scheme comprising 54 apartments in Croydon Funds used to refinance the existing development lender and provide an equity release to repay shareholder loans
Loan Amount:
£10.7m
LTGDV:
55%
Term:
2 years
Margin:
3.65% above BOE Rate
Arrangement Fee:
1% of the Facility Amount
Additional 0.5% on outstanding balance if loan is not fully repaid in 12 months
Prepayment Fee:
Nil
Repayment:
Interest Only
60% of sale price or valuation of each unit whichever is higher to be applied to reduce borrowing.
Interest:
To be covered from a margin account of £210k (equivalent of 6 months interest)
Security:
AMFLC over FH property
Personal Guarantee of main UBO for £1m
Covenants:
LTV not to exceed 55%
1.75x ICR in the event the property is let and margin account released
Conditions:
Satisfactory Valuation to show GDV and Rental value
Funds to be released following satisfactory confirmation of destination of equity release (i.e. repayment of shareholder loans)
Building Regs completion certificate
10 year New Build Warranty
Sight of final planning permissions issued and confirmation that conditions discharged
