We were recently asked to provide borrowing of nearly £3 million to support the purchase and repositioning of a large Grade II-listed manor house.
The client was a high net worth individual with a complex borrowing structure, which we needed to get comfortable with before considering any loan arrangements.
Deal scenario
The property in Gloucestershire is a substantial listed manor house that the client intends to let for high-end corporate events, business conferences, and company away-days.
It was purchased from the vendor for £5.8 million with our participation being £2.96 million.
The borrower required a relatively quick turnaround time of six weeks.
Our lending solution
We agreed to advance the full amount requested over a 15-month term. Interest will be retained for the first six months to enable the borrower to stabilise and reposition the property, ready for letting.
The repayment of our facility will come from wider portfolio sales on a development in Northampton that the client had just recently completed.
We faced challenges during the legal process, including a requirement for a Japanese knotweed treatment plan, and a report addressing the historic land slip on the grounds of the property.
Despite these, we were still able to exceed expectations by completing on the loan within the time frame required by the client, without exit fees or early repayment charges.
Outcome
Our Relationship Director, Mel Howard, commented:
“We are delighted to have had such a quick turnaround. Our client’s exit strategy, partnered with their net worth, gave us the confidence to pursue this deal.
‘’Due to our experience in the sector, we were able to support our borrower and resolve the presented legal challenges.”
Get in touch
If you’d like to talk to us about our commercial lending proposition and how we can help you and your clients, speak to the Relationship Director in your local office.
Beyond Bridges: The next step for borrowers and investors
“This expansion in Ortus’ product range is part of our ongoing effort to serve our loyal clients and introducers. We have had a particular focus on commercial property since our inception and providing 5-year commercial loans was the next logical step in growing our offering. This product now enables us to help borrowers and investors for the next step beyond a bridging or acquisition loan.”
