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The borrower is an experienced property developer. This loan is to be used for the purchase of six terraced properties under one title with additional funding for the development being provided under loan L69607. The properties will be renovated and sold for £160,000 each providing a GDV of £960,000.
The gross loan is £315,000 over a term of 12 months on the F2 product which gives a return of 6.5%. 12 months interest payments are included in the advance and will be held on account for lenders.
Security is provided by way of a 1st legal charge and it is proposed that the renovations will commence immediately upon completion of the purchase of the site.
The OMV for the security is £450,000 (LTV 70%). The GDV for the development is £960,000 giving an overall LTV of 63.4% inclusive of the development loan.