Location: Warwickshire
General Background
Well established mid sized livestock farm with a single owner. Owner looking to develop existing barns on his land to turn into residential units for sale as well as opportunity to buy 40 acres of neighbours pasture land. Also looking to sell his farmhouse so he could downsize and move into one of the renovated barns. Needed £1,200,000 bridging loan to achieve this and pay off an existing lender.
Finance Background
- Sole Trader
- Farm has an existing loan against it
- Business is profitable
- Small salary drawn from the business
- £100k business overdraft
Alchemy Funding Approach
- Type: Bridging Loan
- Term: 12 months
- Loan to value: 65%
- 12 months interest, set up and exit fees are prepaid and added to loan so no income or affordability calculations required
- Exit from loan is from sale of farmhouse and other converted barns
Security
- First charge on farm and new land being purchased
Rate
- Set up fee – 2%
- Exit fee – 1%
- Interest – 1% per month
