Pre-Planning for Care Homes - experienced developer with strong track record looking to grow quickly
- Location: West Midlands
- Amount Required: £237,500
- LTV for entire deal: 50%
- Sector: Development
LTV represents Loan To Value, where Value is an up to date valuation of the property involved and Loan is the total amount to be lent to the borrower, including the Investor's loan.
The client is a very experienced and successful developer who, on the direction of a national care group, buys closed pubs with land, obtains planning for a care home and immediately sells it onto the care group.
There is always a pre-purchase contract. Typically projects take 6-18 months depending on planning authorities.
He has completed on 10 properties with them over the last couple of years. Councils are, obviously, very keen to see them moved on and are therefore supportive. Previously he has utilised a niche lender who has now decided to wirhdraw from the market resulting in this opportunity being offered to Strata.
He will have up to 5 deals on at a time and is looking for 50% against each one. This first one is with his solicitors and is ready for investement. He will purchase from his own resources if necessary, but this restricts the number that he can be working on.
