Furniture Showroom into 15 Flats

by Property 118

13:44 PM, 31st May 2017
About A year ago

Furniture Showroom into 15 Flats

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Furniture Showroom into 15 Flats

The following project outlines how one of our clients used our flexible property funding to turn a profit of £250,000.

The client, an experienced Property Developer, purchased a former furniture showroom in Liverpool and transformed it into 15 residential flats.

The client drew down the funding in multiple tranches in line with his schedule of works.

By only accessing the funds he actually needed at any one time, finance costs were kept to a minimum.

CASE STUDY >> http://www.lowrycapital.co.uk/2017/05/25/conversion-of-a-furniture-showroom-into-15-flats/

This case study is a great example of our flexibility and ability to tailor funding to the client’s precise needs.

“Our client had agreed to purchase a substantial commercial building, comprising of a furniture showroom on the ground floor with offices above,  in Liverpool for £240,000. The client then secured planning to convert the property in to 15 apartments creating uplift in valuation to £400k.

Due to the enhanced value of the property, Lowry Capital provided initial funding of £191,500 (80% of the purchase price)in September 2016.

The client had funds to start the renovations and once the project had progressed we had it re-inspected by the same surveyor in December who confirmed the property had now increased in value to £505,000. Within 48 hours of the re-inspection we released further funding of £111,750.

Jan 2017, the client needed to pay contractors urgently, and whilst the site hadn’t progressed much since previous valuation, we were flexible enough to provide a small amount (£35,000) to ensure the development remained on track.

Over the next 5 months, we have provided further advances a further 4 times, with each stage being inspected by the original surveyor. Overall, lending 60% of the open market value until completion of the project.

Throughout the development, Lowry Capital provided total funding of £585,000 with the final valuation being £975,000 with a GDV of £1.2m.

By only paying for funds as drawn down in line with the schedule of works, the client kept finance costs to a minimum.

All 15 flats have been sold off-plan and have exchanged with completion dates been set for a week after the development completes.

After all costs are taken into account, including finance costs, the developer will make a profit of £250,000.”

Lowry Capital provides quick funding for residential investment, commercial and semi-commercial property (any condition considered) throughout England, Scotland and Wales.

Richard Basso

Managing Director

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