Many commercial spaces ended up laying empty following the pandemic. Unfortunately, many offices and retail properties never reopened, and boarded up windows were a common sight on the nation’s high streets.
But, these empty spaces have created opportunities for property investors. The UK is desperate for more residential options, and buyers could turn to empty commercial properties for the solution to this.
Conversion projects have emerged in recent months as investors try to target renters and residential buyers. A borrower approached us to provide funding for a long-term conversion plan, but we had to make sure there was a solid strategy in place before we could move.
Making sure the property investment was secure
Due to the level of funds needed to purchase the property, our underwriter secured the deal against multiple assets the borrower already owned. But securing the funds wasn’t the only concern. We had to make sure the investment itself held long-term potential.
The commercial property being bought laid vacant, but the borrower planned to convert the building into flats. Once completed, this property was expected to achieve a high income. As such, we also worked with the valuer to determine if there would actually be demand for the property.
Fortunately, it was located in a prime area, with easy access to a local shopping centre and transport links. With these factors at play, coupled with multiple exit strategies available, we were comfortable in issuing the funds.
Stepping in to help where other lenders shy away
This borrower faced a number of hurdles before coming to us for support, including being turned away by other lenders. The intricacy of the deal and their background proved challenging to overcome in the wider market, but we’re able to work with all kinds of complications.
We can deal with LLPs, SPVs, offshore companies, foreign nationals, trusts and more. What’s more, we’re happy to hear from property investors with CCJs, defaults, missed mortgage payments and other issues on their record.
We understand that property investors are likely struggling to get very far in the current market, regardless of how their background may look. But, so long as they want to push forward for the betterment of the industry, we’ll be there to support them.
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