Example Term Loan: 180,000 for farm diversification, Wales, 60% LTV, 1st Charge

Background

Why did the borrower need the loan?

Simple staged drawdown for the development of a derelict barn and buildings to convert into holiday lets and a campsite.

Why couldnt they raise funds from traditional lenders?

Their bank would not assess the loan, as the project was not immediately cash generative and the borrower had historic credit issues.

Why were we selected?

Our team visited the farmer to understand the collateral and what would need to be done to renovate the site.

Key Loan Terms

Amount:
180,000

What did we see that others didnt?

We met someone with a good track record, who had been caught out by the credit crunch, with a site in an attractive location at the top of a quiet lane, overlooking the sea, with good potential for seasonal letting.

Term:

84 months

LTV:
60%

What is the expected exit?
Refinance/extend once first barn completed or sale of property to local investor.

Security:
1st Charge

Use of Proceeds:
Staged drawdowns for site development.

Exit:
Refinance/extend once first barn completed or sell property.

Rate:
8.0%