FOLK2FOLK Completes Largest Loan Of 2020 - Enness Global Mortgages

FOLK2FOLK has just completed its largest loan to date this year – a £7.5m loan to be drawn down in two tranches. The loan was required by a 400-acre Scottish estate seeking funds to refinance an existing loan and fund infrastructure costs for 66 individual self-build plots prior to sale.

FOLK2FOLK is seeing continued strong investor appetite, and the first tranche of £6.75m has been funded by 172 investors, a combination of loyal repeat investors and those investing via FOLK2FOLK for the first time. Of the initial tranche, £1.3m was funded through Innovative Finance ISA investment.

A key factor for investors was how FOLK2FOLK structured the deal to guarantee the first 18 months of interest. The spread of sectors covered by the loan, reducing reliance on any one sector, was another aspect giving FOLK2FOLK investors confidence in the current economic climate.

The success of the deal lies in FOLK2FOLK’s ability to view each transaction as unique and understand the distinct intricacies that each presents. In addition, we know that hard work, teamwork and positive attitudes are essential when collaborating with brokers to help British SMEs gain the finance they need and keep the economy moving.

Summary of the Deal

Loan amount

£7,500,000 to be drawn down in two tranches.

Location

Scotland

Broker

Enness Global Mortgages

Funding requirement

Loan to refinance an existing facility with another lender and fund infrastructure costs for 66 individual self-build plots prior to sale.

The solution

A £7.5m facility for a period of 3 years against an estate valued at over £18m.

Security

A 400-acre estate operating as a country club, hotel and award-winning golf course, including:

• Listed house comprising 11 suites trading as a wedding and hotel establishment
• Castle dating from 1120 with associated grounds
• 19-hole golf course, pro shop, member and non-member facilities, the Glass House restaurant, stable block, adjoining cottages and engine shed
• Parkland categorised as a “designed landscape of historic and architectural importance”
• Two development sites with outline planning consent for 66 residential units
• Farmhouse with 10 acres

Interest rate

6.5% p.a.

LTV

Maximum 60% of open market value.

Term

4 years.