As many of you will know from your own experience, property developers and investors are often asset-rich but cash-poor folks. There’s nothing wrong with that, it’s just part of the property game. So, one of the things that we often hear from our borrowers is that getting higher gearing is a key consideration for them. At Blend Network, we have built this into our model and a key part of our proposal is higher gearing. And we find our borrowers love the fact that we are able to lend more than traditional lenders.
Don’t just take our word for it. Here’s a case study of a recent loan we funded in less than a minute – and see what the borrower has to stay about it below.
Hipswell Loan Case Study
The borrower is a very experienced HMO investor – a former investment banker who has been a property investor for the past 3 years with a number of successful projects under her belt. She wanted to convert an existing 3-bed house in Coventry into a 5-bed HMO. One the key highlights of this deal was that we were able to lend the borrower more than the purchase price of the property. The price was £129k, with a further £75k of build costs and a Gross Development Value (GDV) of £255k. We were able to extend a loan facility of £165k to cover most of the purchase price and all of the build cost, taking our Loan-To-GDV (LTGDV) to 65% (or 75% including the rolled-up-interest on this 18-months loan).
‘I was delighted with how easy and hassle-free it was to fund my HMO project with Blend Network. I’ve been an HMO developer for some years now and the great thing about dealing with Blend Network was that I was able to borrow more than with other lenders and above the purchase price. As a property investor, cash is always king, so being able to borrow more and have the decision-maker on the end of the line anytime was definitely a game-changer.’
– Davinder Sanghera, Hipswell Project
How does that sound? If this is music to your ears and you got a project, you’d like to discuss with us, get in touch! Call us on 020 3409 3300, drop us an email on enquiries@blendnetwork.com or just come and grab a coffee at our office in London’s Mayfair. We are here to listen and help you with your project.
Blend Network News 