A client contacted their broker as they were looking to invest in a semi-commercial property in Essex. The building featured nineteen flats above seven commercial units. All of the flats were already let out, however four out of the seven commercial units on the ground floor were vacant and required refurbishment prior to re-letting.
The broker got in touch with InterBay to discuss loan options for their client. As not all the commercial units were currently let out and improvement works were required, research was completed to determine the severity and cost of any works, as well as ensuring the current level of passing rent supported rental coverage vs mortgage costs by a minimum of 100%.
In addition, the property was located in a strong city centre location where marketability periods were short and demand was high. This gave us further confidence they’d be able to successfully let out all the units quickly once refurbishment works were completed and would increase the rental cover further.
The client had already completed an early valuation instruction and with engagement between Mo Parmar, Specialist Finance Account Manager, Real Estate and our Transactional Credit Committee, we were able to get an upfront decision on proceeding which provided the client the confidence that the case would be accepted prior to spending valuation and solicitor fees. We were able to move from offer to completion in just two-and-a-half weeks.
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