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.
Facility
£1.2m
GDV
£1.9m
LTV
65%
Monthly rate
0.85%
Term (agreed)
12m
Actual hold
7m
Est. all-in cost
£89,400
Cost vs facility
7.4%
Outcome
Closed on plan.
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.
Lesson
Below £2m facility, the challenger banks often decline. Specialist non-bank pricing is fair for the speed and flexibility on small schemes.
What the numbers show
Over an actual hold of 7 months at 0.85% per month, monthly interest on a £1.2m facility runs to about £10,200 each month. Add a 1.5% arrangement fee of £18,000, and the estimated all-in cost is roughly £89,400 — about 7.4% 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.
- 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.
- 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.