Head of Bridging and Commercial
Case 1
Regulated bridging finance for change of usage
This case sticks in my mind because there were a lot of different angles to it. The agreement involved renovation, refurbishment, a change of usage and regulated finance.
The client was in the market for a former residential property that was most recently used as multi-unit offices. Their intention was to buy it, complete some light refurbishment and change its usage back to residential so they could move into it as their primary residence.
They estimated that developing the property to the tune of between £150,000 and £200,000 would increase its value to £1 million, so the purchase price ended up being £650,000.
I helped them secure a regulated bridging loan to cover 65% of their borrowing requirements, a gross loan amount of £422,500. With all fees and deductions factored in, that was a net total of £374,490, taken over a 12 month term with retained interest.
Successfully securing this finance allowed the client to buy the property and finish the necessary works, before remortgaging onto a residential agreement upon completion.
Chris Duckworth - Head of Bridging and Commercial
Case 2
Buying at auction
Timing is always critical where auction purchases are concerned, and in this case, the client had 28 days to complete a purchase under the hammer. This was a property they were buying through a special purpose vehicle, to refurbish and rent out to tenants.
The purchase price was £400,000 and I helped them secure 75% of that in time to seal the deal. This was a gross loan amount of £300,000, amounting to £273,665 net with all of the deductions taken into account. An automated valuation model was used to save time.
They took the loan out on a 12-month term with retained interest and carried out light refurbishment work over that period. Their exit strategy was a buy-to-let mortgage after the works were completed, which I arranged for them with a 25% commission share.
Not only was the client able to secure the funds they needed in time to buy under the hammer, they were delighted with the mortgage deal they ended up with afterwards.
All clients' names and personal information have been excluded from these case studies to maintain their anonymity
