Client situation.
A 3-bedroom terrace purchase and refurbishment project needed a phased financing solution. The client required £156,600 for the purchase and an additional £39,041 for refurbishment works, a loan that would need the purchase amount on day one, and a tranche of refurbishment funding after the acquisition was complete. While phased funding isn’t uncommon, many lenders are reluctant to do it due to the administration involved, which can delay the process and increase costs for the borrower.
Our solution.
We structured the facility to release funds in two phases, matching the client’s requirements perfectly. The 66% LTV facility totalled £204,641, with funds released as needed for purchase and then refurbishment phases. Our flexible approach meant we could provide exactly the funding profile the project needed, when it needed it, without unnecessary complexity or administration burden.
Result.
Eight days to initial completion, with the refurbishment tranche ready when the client needed it. This flexible approach allowed the client to execute their strategy efficiently while minimizing interest costs. They only drew the additional funds as required, optimizing their loan costs while having the certainty that refurbishment funds would be available when needed. This loan demonstrates how creative structuring can benefit both lender and borrower.
Need phased funding? Our flexible structures adapt to your project requirements.