Property: Mill conversion
The client had obtained planning consent for converting a mill into 26 apartments with commercial units on the ground floor. The applicant had agreed to purchase the property prior to the planning being agreed and exchanged contracts on the basis that they would complete within 14 days of obtaining planning, which is unusually short for projects of this nature – 28 days is the norm.
Once the planning permission was granted, the vendor put pressure on the client to complete the purchase. However, the client’s application was being delayed by a lender who kept moving the goal posts. The client was endanger of not completing within the notice period, whereby the vendor could withdraw from the deal and keep the deposit paid by the client.
Hope Capital’s solution
The client’s broker introduced the deal to Hope Capital with less than a week until the notice to complete expired. In order to guarantee the deal was completed within the timeframe, it was necessary for Hope to lend outside of their normal lending parameters. Due to the quality of the applicant, a positive valuation report and a clearly defined exit route, an advance of up to 75% of the valuation was agreed, which provided sufficient funds for the client to complete the purchase.
Despite complications during the course of the legal due diligence the applicant was able to successfully conclude the purchase. From receipt of the application forms to completion the whole deal took less than 14 days, and the client did not lose his deposit.
“I’m very impressed with how you and your colleagues pulled this difficult deal together, so will definitely use you again!” Ian Battersby, ECS Finance