Our clients are experienced property developers and purchased a commercial building using a development finance facility to allow them to refurbish the retail units and create residential units above. The property, located in Surrey, comprised of two shops and 14 flats which were to be let out.
As interest was being added to the development loan on a monthly basis, the funding facility needed to be repaid quickly to avoid increased costs.
Given the desirable location of the property and the quality of the development, both the retail shops and the flats were in high demand. This was great for our clients as it gave them the confidence that any potential future rental voids would be kept to a minimum.