Case Study: Lenton, Nottingham
Project Completed: September 2019
The developer operates numerous properties within their portfolio and specialise in high yield HMOs. With properties throughout the UK, they are well versed at spotting potential, adding value and applying a superior finish to increase rental yields. Recently the developer has been focusing on a number of new projects in the Nottingham area which is where the development being reviewed is located. The property standard is high which has seen this developer acknowledged for the second time with a property of the week from Mint’s project managers who oversee all our clients.
The property was purchased at auction with the intention to add their customary finish while increasing the potential of the property by adding further accommodation. The development goal was to increase occupancy from three to four bedrooms while adding additional living space with an accompanying extension.
Purchased at auction for £192,000 amongst a lot of interest the project now completed should see an increase in GDV of 40% – 45%.
Mint was approached by the developer as we currently had a loan live with the developer on another property and due to our exceptional terms and quality of service, the borrower was keen for Mint to finance the purchase of the property. Given the property was purchased at auction Mint worked very efficiently post auction to ensure the property was financed and ready for construction and refurbishment to begin at pace.
Mint provided a £134,000 loan secured on a first charge on a term of 12 months. The plan was to refinance on the completion of the works. By providing a 12 month period Mint were ensuring the developer had enough project delivery time not only to complete the development but to also allow sufficient time to plan their exit to refinance with a mortgage lender.
Mint’s internal project managers worked closely with the developer to ensure the schedule of works was on target. Given the developers experience it was no surprise that the schedule of works was completed in a very timely fashion to produce an exceptional HMO property to add to their growing portfolio.
Should you require any auction or development finance for a new or upcoming project then contact Mint Bridging today to discuss your needs or alternatively submit an eligibility check to determine your level of funds.