Together has completed a £550,000 short-term loan in five working days after a property investor was let down at the last minute by his high street bank.
The customer had held a business account with his bank for many years and full credit approval had been agreed for both the purchase and subsequent development of the property. However, this was subject to the local council confirming retrospective planning permission for an extension that had already been built to the rear of the building.
Due to delays on the part of the council, the customer was unable to get a Certificate of Lawfulness to backdate planning permission for the extension, meaning the bank could not release funds in time.
The case was referred to Together through the bank referral scheme, whereby under changes to the Small Business Act, banks must now signpost business customers they cannot assist directly to a select number of alternative finance providers.
After reviewing the application and instructing a new valuation, as well as assessing proof of income and financial statements, Together agreed to provide the £550,000 needed on a 12-month term at 54% loan to value.
The investor intends to develop the property further, with both loft and basement conversions, with the anticipated post-refurbishment market value more than doubling to £2.1 million.
Daniel Owen-Parr (pictured), head of professional sector and auction at Together, said: “This is a great example of the mainstream banks working with us to help their business customers access the finance they need. In this case, the customer needed the funds quickly to buy and then refurbish this impressive Victorian property, and get it back on the market as fast as possible.
“Our ability to deal with more complex issues and provide funding ahead of planning permission being granted, combined with our speed of service, made us the right fit.
“We knew how important the deadline was and we pulled out all the stops to deliver the finance within five working days, which was a fantastic outcome.”