Warwick Crescent: Development Finance in Action
At the start of 2018, a property professional with impressive plans for a new housing development approached us seeking just over £3.5 million to bring his vision to life.
Money well lent
Luckily for him, Kuflink Bridging know a great project when we see one and were keen to help. Fast forward a year and we’ve lent £3,214,000 to date, which a quick wander around the site suggests is money well lent!
Warwick Crescent is a brand-new waterfront housing development of 9 high spec, 4-bedroom homes, all complete with their very own private garage, driveway and garden. It is based in the historic Kentish town of Rochester and has an anticipated gross development value of £5,075,000.00.
From hard work, to house, to home
As of 15th January 2019, independent valuers certified that works to the value of circa £2,291,000.00 have taken place on site. So, what does a little over two million pounds get you when you’re constructing a brand new housing development?
- We started with a vacant site, that had been cleared ready for works to start
- First up, the access road was resurfaced, drainage installed and foundations laid for all nine properties
- Structural brickwork was then completed and roof structures added for all nine properties
- Next, the houses were made wind and water tight
- The builders then set about finishing the first fix of electrics and plumbing
- In February 2019, the homes were finally listed for sale!
No stopping us now!
Thanks to a bout of bad weather, our clients had to adjust their construction program with a slightly later completion date. However, after a lot of hard work, they are now approximately 3 weeks in front of their adjusted program!
If you or your clients require bespoke development finance at fantastic rates, call or email for a free quotation today – decisions in principle in less than 4 hours!
01474 33 44 88 hello@kuflink.com
Kuflink helps first-time hotelier complete a fast purchase
Kuflink was recently approached by a client who had just exchanged contracts to purchase a hotel in Wales, however had a shortfall in the deposit. He needed to borrow £210,000 to complete this purchase and to clear circa £120,000 in existing debt against the security, and was working to an extremely tight timescale.
Kuflink were able to provide a bridging loan of £210,000 in just 10 days, taking a first legal charge over two one-bedroom flats in Dartford at a loan to value of 70% as security. The client was then able to finalise the purchase of his exciting new business venture and will exit the loan at the end of the six-month term by refinancing onto a longer-term option.
Feedback from the broker
The broker for this loan, Dil Thandi at Clear Financial Solutions, was extremely pleased with the result; “I recently approached Jeff at Kuflink for a client of mine who was making his first venture into the leisure industry. My client required a speedy refinance of some property that he owned as there was a shortfall in the deposit and our client had already exchanged. Working on extremely tight deadlines and with non-standard, multi-unit freehold properties, Jeff and Kuflink were able to work to the client’s desired timescales and ensure his purchase was not at risk. I would definitely use Kuflink again and would not hesitate to recommend them to other brokers.”
Specialist Valuations? No Problem!
The Key Points
- Our client was looking to borrow £440,400
- This was to assist with the refurbishment and conversion of the security (a former care home) into 4 self-contained assisted living flats
- The clients run a company specialising in care services with over 24 years’ experience
The Context
A broker recently approached us with a niche deal from their clients, who needed £440,400 to assist with the refurbishment and conversion of the security into assisted-living accommodation. The security had previously been used as a care home and needed specialist expertise to properly appraise both its current value and the gross development value. Our broker advised that other lenders had been cautious of the deal because of this, but Kuflink have built up a trusted panel of valuers over the years and knew we had the right contacts to make it happen.
The Resolution
With the tricky valuations now complete, we proceeded on the basis of a fantastic 44% loan to value and sent funds to our client, kickstarting their 12-month conversion project in great time.
The loan is being released in tranches, with a day one advance of just over a third of the total amount. The rest of the loan will be released in accordance with the progress made with the property and in consultation with our specialist surveyors.
Meet the Team: Case Managers
Ever wondered what happens at Kuflink HQ when someone applies for a loan? Clare, Rebecca and Lucy from our Cases Management team explain how they process applications, vet borrowers and instruct valuations in the very first instalment of our ‘Meet the Team’ series!
Tell us about your team and the work you do at Kuflink
Clare: In short, we package deal files and carry out the due diligence for every enquiry that the sales team bring in. We put together an initial decision in principle for these loans, and once the formalities are agreed we do all the necessary behind the scenes work from credit checks and land registry searches to valuation reports and legal paperwork. We’ll take a deal from the application stage right through to funds being sent to our clients.
What does a typical day look like for you? Who do you work with the most?
Rebecca: We’ll each have multiple different cases to manage at any time, so it’s pretty busy! We work really closely with the Underwriting and Sales teams in house, and externally we have to maintain good relationships with Solicitors and Valuers to help us complete as quickly as possible.
What skills make a good Case Manager?
Clare: The main thing is attention to detail, we always have lots of information to keep on top of
Rebecca: Organisation is key too, as things need to be done quickly and accurately!
Lucy: And teamwork – we’re all happy to lend a hand with each other’s cases when things get hectic
What’s your favourite thing about your job?
Lucy: It’s really rewarding when one of your loans complete and the client gets their funds, so you know you’ve helped someone to start their development or purchase a new property
Have you got a favourite memory from your time here?
Clare: We’re all encouraged to attend industry events with the team, and I went to my first last year – the comedian they got in to host was fantastic and it was nice to spend time with the team outside the office.
Lucy: I only joined in October last year, but my favourite thing so far is how welcoming everyone was. I felt at home right from the start.
Rebecca: In summer, the whole team dressed in red, white and blue and we closed the office early to watch the world cup with a BBQ by the river!
Get to know the people behind your investments with our new weekly ‘Meet the Team’ posts. Have a question you’d like us to ask? Email your suggestions to hello@wp1www.kuflink.com
Kuflink Complete Complex Bridge in Just 4 Days
Kuflink have completed an emergency bridging loan in just 4 days, after another lender was unable to meet the requirements of the deal.
The borrower, an experienced landlord with a high net worth, required urgent funding in order to repay existing indebtedness against a property in his portfolio. Speed and efficiency were key to this deal as the borrower was extremely close to his re-term date and, after being let down by another provider, needed a lender that understood this.
Although bridging loans take an average of 3 to 4 weeks to complete, the Kuflink team drew upon their wealth of experience and slick internal processes to quickly package three loans, totalling £562,500.
CEO Narinder Khattoare commented ‘The security properties, exit strategies and structures of these deals varied and as such, the bridge was a complex one – luckily, we are used to this type of deal and were able to rise to the challenge’.
At the end of the six-month term, the borrower will repay the facilities following the sale of severalproperties, leaving them in a great position to continue growing their portfolio.
In need of fast finance? Get in touch today to see how we could help!
Kuflink Saves Property From Receivers
Kuflink was recently approached by a potential borrower in a complicated financial situation, who needed urgent access to funds in order to halt repossession proceedings against his commercial premises. To make matters harder, the client lives abroad and works in various different countries, which had raised concerns for some less open-minded lenders. The fact that the tenant leasing the property was another company owned by the borrower further complicated the situation.
However, Kuflink approach complex cases with a ‘can-do’ attitude, so our sales team and underwriters got to work right away to provide a fitting solution.
Not only were we able to lend £264,000 for a 12-month term to clear the borrowers’ indebtedness, but we were able to complete this deal in good time and save the property from receivers. We capped the total loan amount at 60% LTV and took a first charge over the commercial property as our security.
This loan is a great example of how flexible, fast and efficient Kuflink is when it comes to delivering short-term finance. We consider each enquiry in-depth and have an excellent reputation for taking a fair, objective approach to all our clients.
Deal Specifics
Funds Required: £264,000
Loan Duration: 12 Months
Open Market Valuation: £440,000
LTV: 60%
Security: 1st Legal Charge
Kuflink Helps Client to Purchase Hotel on Norfolk Coast
The Challenge
Our client, who has experience in purchasing and enhancing the value of hotels, required a bridging loan of £385,000 to purchase a 24-room resort hotel in Mundesley, Norwich. The hotel was purchased as a going concern for a consideration of £775,000, however we have provided our facility against the bricks and mortar open market value of £550,000.
The Solution
Kuflink was able to secure a 1st legal charge over this property and lend £385,000 to our client for a 24-month term. The client plans to exit the loan by refinancing with a commercial lender and has been advised that they will require 12 months’ trading accounts prior to this, therefore there is a possibility that the client may be in a position to repay the loan sooner than 24 months.
Deal Breakdown
Funds Required: £385,000
Loan Duration: 24 months
Open Market Valuation: £550,000
Going Concern Value: £775,000
LTV: – 70% against OMV or 53% against the going concern value
Security: 1st Charge on a Resort Hotel in Norwich
Why Our Client Chose Kuflink
The client chose to proceed with Kuflink as we could provide the required loan swiftly and also at a very competitive rate.
Interest rates on bridging loans are subject to underwriting criteria. If you do not keep up with repayments your property will be at risk of repossession.
Kuflink helps client to purchase auction property
The Challenge
Our client is a London-based professional who wanted to purchase a 3-bed residential property in Northampton for £140,000 at auction. They required a loan of £121,000 in order to complete this deal. The client plans to undertake some light refurbishments for this property, which currently has an open market valuation of £173,000.
The Solution
Kuflink were able to secure a 1st legal charge on this property and agree a 12-month loan of £121,000 with our client. This term gives our client plenty of time to refurbish the property as planned and then, in turn, sell the property.
Deal Breakdown
Funds Required: £121,000.00
Loan Duration: 12 months
LTV: 70%
Time Taken to Complete: 11 working days
Security: 1st Charge on Residential Property in Northampton
Charge: First Legal Charge
Open Market Valuation: £173,000
Why our client chose Kuflink
The client chose Kuflink as we were able to complete within their timescale of 11 working days, which was necessary due to the property being an auction purchase.
Interest rates on bridging loans are subject to underwriting criteria. If you do not keep up with repayments your property will be at risk of repossession.
We helped fund conversion costs of a new build nursing home
The Challenge
Our clients are well-established property investors and developers who own a successful building supplies company, with over 40 years’ experience between them.
Having already spent some £1,670,000 on the project to make the property completed to a shell finish, our clients wished to borrow a further £1,224,000 to complete the development of the partially constructed 47 bed care home over approximately seven months. Once the work has been completed on the property it is envisaged the LTV will reduce to 26%.
The Solution
Kuflink worked closely with the clients to agree a loan of £1,224,000 over a 12-month term, to be drawn in six stage payments of circa £200,000, with the first tranche being drawn in November 2017. Prior to each drawdown a qualified surveyor will visit the property to assess progress of the development.
As security we took a First Legal Charge over the commercial property.
The client’s exit strategy is to re-finance using a mainstream lender and discussions had already started at the time the loan was agreed.
Deal Breakdown:
Funds required: £1,224,000
Loan duration: 12 months
LTV: 61%
Security: Commercial Property
Charge: 1st Legal Charge
Open Market Valuation: £2,000,000
Why our client chose Kuflink
The client came to Kuflink as they knew that we would find a flexible solution that was a great fit for their business needs.
