FUNDS TO COMPLETE A DEVELOPMENT

An experienced residential developer acquired a part-built development, to build 6 detached houses, 3 of which were complete aside from final fix and practical sign off, and 3 of which were watertight but interior works had not started. Bridgebank lent the developer £565,000 against the site value providing the developer with sufficient funds to complete the development project and to realise his Sales from holding deposits. The “Offer to Completion” process was completed within 10 days – a 3 month bridging loan which was fully repaid 3 weeks early.

BUY TO LET

A nice little Buy To Let investment deal completed within 10 days. This is quite rare nowadays as generally bridging loans are taking longer to complete. We lent 60% LTV on 2 residential investment properties where the borrower had been badly let down by a competitor, who had dawdled for 2 months, causing the borrower to waste money on legal and valuation fees. The bridging loan was a genuine Purchase at Under Value case where we were happy to complete at 100% of the purchase price.Fast effective bridging that helped a distressed borrower as a result of great teamwork by the case management team and solicitors!

SPEEDY PURCHASE

Our client had negotiated a keen purchase price on an office block in Surrey, and had an offer from a high street commercial lender. However, completion was expected to take 3 months and under the conditions of the purchase contract he only had 4 weeks in which to complete. We advanced a 3 month loan based on the market value of the property, and the funds were drawn down with plenty of time to spare.

PORTFOLIO GROWTH

The borrower was an experienced property investor who had a mix of residential, semi commercial and retail investments. Part of his portfolio was funded by a mainstream lender who wanted to come out of the sector due to Credit Crunch issues. The borrower successfully negotiated a discount by means of a “debt forgiveness” settlement with the bank and needed to use a bridging loan in order to make the settlement payment. As we lend against market value, the amount we could lend was sufficient to pay off the agreed discounted settlement to the bank. The loan was over a 6 month term at 65% LTV which allowed sufficient time to arrange a remortgage to redeem the bridging loan. Ultimately, the borrower was able to secure a remortgage and repay the bridging loan inside 5 months.

PROPERTY MODERNISATIONS

Borrower purchased a portfolio of 5 flats in a block of 2 storey terraced apartments at a deep discount to value from a distressed seller. The loan of £175,000 was provided at 54% LTV and our funds enabled the borrower to acquire the flats quickly as part of his extensive residential investment portfolio. As the borrower had cash available for light refurbishment of the flats to enhance value and to secure tenants, the 6 month loan term was ample time to refurbish, tenant and to secure a Buy To Let remortgage to repay the bridging loan on time.

PROPERTY CONVERSIONS

The Borrower purchased a property at auction. The property was originally built as a residential home, but had a planning change and was being used for offices. The borrower, an experienced property investor, had a proposal to reinstate the planning consent to residential and to convert it to two apartments. Funds were provided which included taking security on an additional property with plenty of equity in his existing portfolio, which allowed us to provide sufficient money to lend 100% of purchase plus all of the conversion/modernisation costs. This loan completed inside 7 working days – a prime example of our ability to structure and engineer a deal that worked for the borrower and produce a result with speed and efficiency when needed.

EQUITY RELEASE

We were approached by a developer who wished to buy a pub which had been closed for over 12 months. His intention was to get planning permission, and convert it into 6 flats. Closed pubs however represent poor security for any lender, given the large number currently on the market. We were able to provide funding for the initial purchase by raising a short term facility against one of his existing investment properties which was mortgage free. This enabled him to fund not only the full purchase price, but also monies towards the development costs. Towards the end of the development we released a further tranche secured against the uplifted value of the partly completed pub.

PURCHASE UNDER VALUE

In the current market we are finding that many of our investor clients have been able to identify property owners who are prepared to accept less than the full market value of their properties in return for quick completion. In some cases, buyers are achieving discounts of some 25-30% per property. At Bridgebank Capital we can lend 65% of the market value, meaning that clients can acquire such properties for minimal cash outlay. Typically, these investors will carry out a light refurbishment of the property, and after 6 months can recoup most, if not all of their initial deposit through a conventional buy to let re-mortgage.