At Enness, we pride ourselves on being able to successfully resolve complicated cases—this deal was a clear example of this. My client was an internationally renowned industrial designer, who hoped to turn his creative eye to an unusual property development in the south of England.
The property in question was an old country house valued at £5.5million, which had previously been converted into a hotel. As such, it needed a change of usage and extensive development, such as the removal of the industrial kitchen and offices. This property had the potential to be a truly stunning home, and came with extensive outbuildings and fishing available on the land.
Development finance is typically quite expensive—in the region of 5-6%—which would have raised costs significantly for my client. However, this was not a typical development as my client did not intend to sell the property upon completion. It was therefore necessary to carefully consider a bespoke solution in order to find my client an efficient and cost-effective result.
I knew the complexity and unusual nature of this case would require bespoke underwriting, so I approached a private lender with whom I have an excellent relationship. I carefully outlined my client’s background, and arranged for a £3,850,000 facility on an interest only basis, but with annual capital repayments.
I achieved a rate of 3.99% whilst the development and conversion took place, but as the property would then become a residential family home, I also arranged for the rate to drop down to a lower residential rate once the lender was satisfied the works were complete. This saved my client a tremendous amount in fees, as he was able to stay with one lender—all in all, a brilliant result.