Our motto at Blend Network is ‘you build, we fund’. We are here to take the stress out of funding so that you, as a property developer and investor, can focus on what you do best. With that in mind, we wanted to share with you a case study of a recent deal we funded in Coventry to give you an idea of the types of deals we regularly fund.
The project was a rundown 3-bedroom, two storey terraced house near Coventry’s University Hospital. The developer wanted to convert it into a 5-bed House of Multiple Occupancy (HMO) by extending the back and the roof. Here’s a visual description of the project:
In terms of costs, here’s a snapshot of the deal:
In terms of the Gross Development Value (GDV), here’s a snapshot of the options:
- Resale:
- Brick and Mortar £255,000
- Rental:
- PCM £2,500 (£500 per room)
- Gross Yield:
- 76%
Based on the above information, we were able to provide a £165,000 loan to this developer. The loan was funded in minutes!
We were able to offer the following key ratios:
- Loan-To-Cost (LTC): 80%
- Loan-To-Value (LTV) Day 1: 68%
- Loan-To-GDV (LTGDV): 72.5%
We hope that this quick guide is useful. If you have any project that you are looking to fund, send us an email now to enquiries@blendnetwork.com or pick up the phone and call us on 020 3409 3300 and speak with a member of our origination team. You’ll always speak with a decision-maker who’ll be able to tell you straight away whether we can fund your project, and if so we will send you terms on the same day!
