{"id":13853,"date":"2022-03-16T10:37:58","date_gmt":"2022-03-16T02:37:58","guid":{"rendered":"https:\/\/www.dev.articusfinance.com\/uncategorized-sg\/uk-national-converting-commercial-property-to-residential-use"},"modified":"2023-09-15T14:34:57","modified_gmt":"2023-09-15T06:34:57","slug":"uk-national-converting-commercial-property-to-residential-use","status":"publish","type":"post","link":"https:\/\/backup.articusfinance.com\/sg\/case-studies\/uk-national-converting-commercial-property-to-residential-use","title":{"rendered":"UK national converting commercial property to residential use"},"content":{"rendered":"<h2 style=\"font-family: Verdana, Geneva, sans-serif; color: #134f5c; font-size: 15px;\"><strong>The case in brief<\/strong><\/h2>\n<p><!--more--><\/p>\n<ul>\n<li>Client: UK\u00a0national<\/li>\n<li>Property type: Commercial convert into Residential<\/li>\n<li>Property value: \u00a33.25m<\/li>\n<li>Loan Amount: 100% of development cost + \u00a31.125m<\/li>\n<li>LTV: 85%<\/li>\n<\/ul>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\"><br \/>\nInvesting in a <a href=\"https:\/\/backup.articusfinance.com\/sg\/commercial-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">commercial property<\/span><\/a> to convert to <a href=\"https:\/\/backup.articusfinance.com\/sg\/mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">residential<\/span><\/a> can be a challenge, especially when a competitive mortgage rate is required to ensure viability. The intricacies of factoring both a purchase price and development cost into the equation can be problematic. A competitive mortgage rate for such a transaction can be difficult to obtain on the high street. In this example, our client was looking to convert a commercial property into flats.<\/span><\/p>\n<h2 style=\"color: #134f5c; font-size: 15px; font-family: Verdana, Geneva, sans-serif;\"><strong>Our client<\/strong><\/h2>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Our client was a UK investor, predominantly experienced in the<a href=\"https:\/\/backup.articusfinance.com\/sg\/buy-to-let-remortgage\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\"> buy-to-let mortgage<\/span><\/a> market. This property was their first foray into property development, so finding a competitive mortgage lender with competitive mortgage rates was imperative.<\/span><\/p>\n<p><span style=\"font-family: Verdana, Geneva, sans-serif;\">The property was originally a commercial office unit based in Essex, and the client wished to repurpose the building into 10 individual flats. The property was approved as a permitted development and therefore no planning permission was required. <\/span><\/p>\n<p><span style=\"font-family: Verdana, Geneva, sans-serif;\">The client did not want to invest an extensive initial deposit into the venture, and so was keen on a mortgage lender who would be willing to contribute a significant percentage towards both the purchase price and the development cost.<\/span><\/p>\n<h2 style=\"color: #134f5c; font-size: 15px; font-family: Verdana, Geneva, sans-serif;\"><strong>Our solution<\/strong><\/h2>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">In order to obtain a satisfactory conclusion for the client, we sourced a <a href=\"https:\/\/backup.articusfinance.com\/sg\/private-bank-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">competitive mortgage lender<\/span><\/a>, with competitive mortgage interest rates, in order to ensure that the development was financially attractive.<\/span><\/p>\n<p><span style=\"font-family: Verdana, Geneva, sans-serif;\">We ultimately secured a mortgage deal with a challenger bank who was able to offer 85% loan to value against a predicted Gross Development Value of \u00a33.25 million.<\/span><\/p>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">The mortgage amount was made up of a combination of 100% of the development costs and \u00a31.125 million towards the purchase price, which meant that the client only required an initial mortgage deposit of \u00a3375,000.<\/span><\/p>\n<p><span style=\"font-family: Verdana, Geneva, sans-serif;\">As an added bonus to the client, they were able to access their mortgage funds just 8 weeks after their initial contact with Articus.<\/span><\/p>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Property development can be a complex and often financially challenging venture, with commercial viability and future potential yield high on the agenda for prospective lenders. This is particularly difficult when the investor is new to <a href=\"https:\/\/backup.articusfinance.com\/sg\/development-finance\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">property development<\/span><\/a>. Using an experienced broker such as Articus Finance can provide you with a route into private lenders, who may be more prepared to be flexible on lending terms and <a href=\"https:\/\/backup.articusfinance.com\/sg\/high-loan-to-value-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">loan to value mortgage<\/span><\/a> ratio. <\/span><\/p>\n<p style=\"font-size: 13px; text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">You can <a href=\"\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">learn more about our services<\/span><\/a> or <a href=\"https:\/\/backup.articusfinance.com\/sg\/contact\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">speak to a broker today<\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The case in brief<\/p>\n","protected":false},"author":1,"featured_media":13854,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[69],"tags":[],"class_list":["post-13853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies"],"acf":[],"jetpack_featured_media_url":"https:\/\/backup.articusfinance.com\/wp-content\/uploads\/2023\/01\/uk-national-converting-commercial-property-to-residential-use.jpg","_links":{"self":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/posts\/13853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/comments?post=13853"}],"version-history":[{"count":1,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/posts\/13853\/revisions"}],"predecessor-version":[{"id":21341,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/posts\/13853\/revisions\/21341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/media\/13854"}],"wp:attachment":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/media?parent=13853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/categories?post=13853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/tags?post=13853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}