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The borrowers constituted a joint venture partnership between an experienced property developer (UK national) and Singaporean national, the latter of whom was providing the majority of the capital, buying via a limited company registered in the Isle of Man.
The clients were looking to buy a semidetached house and adjacent coffee shop in West London for £900,000, with a view to demolishing the coffee shop and extending the house to create six flats with an anticipated end value of £2,800,000.
The Singaporean national was unable to come to the UK to sign any documents, so a lender who was comfortable with the borrower instructing a firm of solicitors with offices in both Singapore and the UK, and lending to an Isle of Man registered company was required.
A short-term facility of £600,000 was arranged to enable them to complete the purchase; this was then converted to a 12 month development facility of £1,575,000 to be released in five stages once planning consent had been granted.
The works took 9 months, after which the clients sold half of the units and retained the others as rental investments. retained the others as rental investments.
Disclaimer: This information is general in nature and does not constitute legal, tax or investment advice.