SCPL EXCHANGES CONTRACTS ON THE KINGS ARMS INN
INTEREST RATE ON LOAN FROM HORATIO REDUCED
SCPL exchanged contracts for the purchase of the Kings Arms Inn, Stockland on 30th November 2018. Completion is expected to occur on or before 18th January 2019.
We appreciate this is later than anticipated, however the transaction has had several twists and turns which we were unable to anticipate. As part of the work SCPL has undertaken over the last few months the management committee has been able to renegotiate the terms of the loan from Horatio Properties (Guernsey) Limited (“HPL”).
The structural survey of August 2018 threw up higher costs of renovation than expected including those for roof coverings and internal damage due to a water leak in March 2018.
Partly in recognition of these further costs HPL have generously brought down the cost of borrowing from 7% to 5.75%. Despite having raised more than our minimum target, we have agreed to take the maximum available loan per the heads of terms, namely £200,000. On this basis the reduced interest rate saves SCPL £10,000 over four years.
Renovation works are in the offing and we will update you as these get underway.