Securing Funding For a Client Looking to Redevelop a Pub
17th October 2023
Enness was recently approached by a client who had already committed to purchasing a former public house at an auction sale through an existing company. This client envisioned converting the property into a new public house with residential accommodations above. However, their plans faced a significant hurdle when the lender withdrew their funding at the last minute following a post-valuation review.
The sudden withdrawal of the lender's support left the client in a difficult situation. They had a substantial deposit on the line, and their project was at risk of falling through. In addition to the deposit, the client also needed financing to cover the VAT liability.
Enness recognised the urgency of the situation and was able to leverage their extensive network and financial expertise to secure a timely solution for the client.
To address the immediate funding needs and prevent the client from losing their deposit, Enness connected with a private family office willing to provide the required financing, allowing the client to proceed with the property purchase and maintain their deposit, preserving their position in the deal.
Enness went further by providing a loan covering 100% of the VAT liability. This approach ensured that the client was fully equipped to manage all financial aspects of the project.
With secure funding, the client could complete the purchase of the former public house, safeguarding their significant deposit and setting the stage for the redevelopment project.
The former public house, now under the client's ownership, will be redeveloped into a new public house with residential accommodations on the upper floors.
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