9-unit heavy refurb conversion, Brighton
Slower sales market than modelled. Extended facility twice. Pricing stepped up from 0.82% pm to 0.92% pm for the final 3 months.
Facility
£1.9m
GDV
£2.9m
LTV
64%
Monthly rate
0.82%
Term (agreed)
15m
Actual hold
14m
Est. all-in cost
£240,130
Cost vs facility
13.0%
Outcome
Extended past original term.
Slower sales market than modelled. Extended facility twice. Pricing stepped up from 0.82% pm to 0.92% pm for the final 3 months.
Lesson
Negotiate automatic extension clauses at the outset. The extension fee (£9k) was small; the avoided discretion cost could have been significant.
What the numbers show
Over an actual hold of 14 months at 0.82% per month, monthly interest on a £1.9m facility runs to about £15,170 each month. Add a 1.5% arrangement fee of £27,750, and the estimated all-in cost is roughly £240,130 — about 13.0% of facility. That excludes valuation, legals, and any extension or step-up costs where applicable.
Related case studies
- 12-unit residential new-build, Camden — Conventional mid-market scheme. Strong area, conservative pricing, fast sales velocity. Exit finance beat the extended senior tail by £78k over the 9-month actual hold.
- 24-unit BTR scheme, Leeds — Sold the entire block to a single institutional buyer after 5 months. Repaid early with no ERC. Would have been cheaper to stay on senior + block sale direct, but certainty of execution was worth the premium.
- 5-unit office-to-resi conversion, Bristol — Smaller ticket, specialist non-bank lender. Higher rate (0.85% pm) but completed in 14 days from term sheet. Time-to-close made up for the rate.