Serviced Accommodation Loan Wrexham
Serviced accommodation isn’t a well know form of housing but it can be lucrative for the property developer. Serviced accommodation refers to fully furnished properties that are available for short-term or long-term stays, offering amenities similar to a hotel but with the added comfort and space of a private house and usually, your own kitchen and living area. These accommodations are typically targeted at business travelers, tourists, or individuals seeking temporary housing.
Address of Property
Watery Road, Wrexham LL13
Type of Property
The property was a former 16 bed B&B which had seen better days and was in need of a total scheme of refurbishment. The previous clientele was almost entirely made up of travelling tradesmen who were working in Wrexham for a period of time. The layout was being reconfigured into a 12 bedroom serviced accommodation unit and whilst it was going to be a smaller number of bedrooms, each one would have a bathroom, kitchen and living area.
The borrower was a hugely experienced property developer but this was her first serviced accommodation project but as she was a resident of Ruabon, a small village in Wrexham, she felt she was well placed to keep an eye on the property and could monitor the refurbishment.
What we offered
We provided a NET bridging loan of £565,000 against an agreed purchase price of £968,000. We also provided £80,000 of refurbishment finance which would be drawn down over the full term of 12 months. The total loan was £645,000 with no personal guarantee required by us. I should also point out that a major financial services firm based in Chester was renting 8 of the rooms every month for their visiting executives/staff and they signed a 12 month rental agreement with our borrower so all in all, this was an absolute belter of a deal for the borrower and us.
If you want to know how you can refurbish property in Chester and make a profit when you sell or refinance, please get in touch with us today.
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