Refinance of Newly Converted, 7-Bed Apartment-Style Hotel, Previously an Office Space.

The Requirement:

We were approached to assist in funding the refinance of a newly converted, seven-bedroom apartment-style hotel, previously an office space.

The Interesting Stuff:

As the property had only just completed its conversion, it lacked trading history and financial accounts. However, leveraging our client’s extensive experience in managing similar assets, we secured a 55% loan-to-value financing through a leading high street bank.

To demonstrate affordability, we utilized two years of forecasted accounts, supported by trading records from our client’s other comparable business interests.

In certain cases, we would have explored financing through a challenger bank or a longer-term bridging lender to allow our client time to establish two to three years of financial accounts. However, due to our client’s strong track record and our established relationship with high street banks, we were able to secure this loan at a more competitive rate.

The funding was based entirely on forecasted accounts, supported by our client’s extensive experience to validate the underlying assumptions. Once our client has built up two years of financial records, we anticipate securing a further advance, potentially unlocking an additional 20% of the property’s value.

How we helped:

Leveraging our expertise and established relationships with high street banks, we successfully secured a highly competitive loan for our client. Our strong industry knowledge allowed us to structure the loan effectively, ensuring the best possible outcome.