Walter Road – Refinanced

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Walter Road – Refinanced

Walter Rd front

[featured-img]We are very happy to report that the Walter road project is now finished, and we are now in passive (ish) income mode. 

We have successfully refinanced the project with a 5 year term loan and pulled out all our investors’ money.  Due to the issues with the first project manager and builder, we personally still have a lot of cash left in this deal. We plan to recover these at some point in the future via legal action – however for now, it is locked in this deal. 

Some high level numbers as follows:

Purchase £135,900
Purchase costs £1,500
Renovation 1 £66,000
Renovation 2 £80,000
Total Cost £284,400
Holding costs (bridging loan, utilities etc) £30,000

Total cost £314,400

Valuation £350,000
70% LTV £267,500
Less fees etc

The refinance has provided enough to repay a bridge at 120k, our investors at 115k and still a little in the pot to have a couple of credit cards paid off. So overall our “diploma in Property investing” was a success. The trying times and mindset required to get through this was intense.

Grit, resilience, refocusing of energies to the positive and overall emotional management was key. There were moments where failure and walking away was an option – but we persevered – and met some great investors that dug us out of the depths and got us through. As much as the outcome was not as great as the deal was originally sold to us, or calculated, the amazing lessons baked in were invaluable.


Long Term strategy for Walter Road

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We have refinanced Walter Road with Hampshire Trust Bank on a 5 year fixed interest only deal. Overall the plan will be to continue using this bank for other refinancing deals, although exposure on both sides to one another is best spread. We are also developing a relationship with another bank for future refinancing options. 

The fees for the refinance were in excess of £5k, which is fairly typical. However we hope to avoid those on a refinance in the future, and look for a longer term loan with potentially a lower interest rate. The plan is to keep this asset on an Interest Only basis, with a look to increase the value over the next 10 years ideally doubling in value with the “average” property cycle.


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Jun and Craig are the principals of JC Holdings, they are on an adventure in the UK and sharing their experience via this blog for education and transparency. More details about them on the about page here About us

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