Featured, Mortgage Guide
Client details: Private individuals with no previous large-scale property development experience were looking to purchase a high-value office building to convert into a main residence, requiring property development finance.
Property details: The property was a stunning five-story, Georgian end of terrace house. As the property was most recently used as an office space, there were no bedrooms. The property was extensive, however, with a study, 3 reception rooms on the ground floor, 7 further rooms over the lower ground and first floors, 4 rooms and a bathroom on the second floor, and 4 rooms with 2 bathrooms on the third floor, totaling a whopping 6,630 sq ft (gross internal floor area).
Reason for finance: As the building had been empty for a long period of time it had effectively become a shell and required complete refurbishment and modernisation. The estimated cost for the work was in excess of £1.1m, with work expected to take in the region of 44 weeks.
The converted property itself would then provide an extensive 7 bed house, 6 en-suites, plus further dining and reception rooms.
Challenges faced: Whilst the property had previously been granted planning permission for conversion to a residential home, this had lapsed and new planning permission was required. The building itself was located within a conservation area and is listed. It, therefore, required a Heritage Assessment report because of the architectural and historical significance of the building and area.
Due to delays in the planning process, there was a requirement to maintain the validity of the mortgage offer and valuation over an extended period of time to enable completion.
Solution: We provided an initial interest-only, two years fixed rate to allow for the construction phase, with a total term for the mortgage of 10 years. It was also agreed with the bank, that the borrower’s solicitor was able to represent the bank which provided for a more streamlined process through to completion.
Special thanks: Tandem Bank
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