Case study 1st charge.
Client inherited a property with sister and had no mortgage. The client wanted to buy out the sister but had some adverse credit so bridging finance was used with monthly payments deducted from the loan so no monthly payments were required for 12 months. After the term the client met a couple of lenders criteria for the exit to pay back the bridge so lender was happy to proceed. Property value was £220,000 and £100,000 net required. Rate was 1.3% pcm with 2% lenders arrangement fee.
Case study 1st charge light refurbishment
Client bought a house from the auction and needed funds to complete within 30 days. We were able to get a first charge bridge for 75% of the open market value at a rate of 1.35%. Once the property was refurbished it was sold at the market value and client made a tidy sum within 6 months.
Case study
Client had a property valued at £400,000 and had a first charge of £280,000 outstanding. Client needed £70,000 second charge on a bridge to purchase an investment property quickly. Rate was 1.4% with 2% arrangement fee.
Case study
Client had a property valued at £300,000 and had a first charge of £110,000 outstanding. Client needed £70,000 second charge on a bridge to complete on a property which they already exchanged on and were short of funds. Rate was 1.5% with 3% arrangement fee. No valuation was required by the lender and no consent was also required from the 1st charge lender. Client received cleared funds within 5 working days.
Development Case study
The client came to us with terms from another lender to purchase a property for delevopment. Current terms were 70% of the 90 days value to purchase the property and 70 of the development cost. We were able to get 70% of the purchase price and 100% of the development cost as lenders exposure was less than 65% of the Gross Development Value. Purchase price was £950,000 and development costs were £400,000.
Rate offered was 2% arrangement fee and 1.25% pcm. As we have relationships with high street commercial lenders we were also able to do the exit for the client.
HMO Property Case study
The client wanted to purchase a licensed HMO but it also had a seperate self contained studio which was difficult to finance as had no change of use consent from the council. As such the vender only wanted cash buyers. We were able to arrange a bridge for the client so once purchased the kitchen could be taken out of the self contained studio and as such exit with a normal high street lender within 3 months. Client was happy as even with the bridging cost the client was saving over £70,000 on the Open Market value.
Semi Commercial Property Case study
Client came contact us as his current bank was about to but his property in the Auction and LPA had possession. The curreny lender would not allow the client to sell the asset but only refinance. Client went to traditional Broker who was very slow and after 3 weeks little progress was made. After speaking to the client we had indicative terms for the client within 30 minutes and a formal offer subject to valuation within an hour. We also introduced a solicitor to act quickly for the client. Within 48 hours the valuation was carried out and 3 days after the the report was sitting with the lender. The semi commercial property in North London was valued at £800,000 and client needed £430,000 net. The rate agreed was 0.99% pcm with 1.25% lenders arrangement fee. All legals were done by clients solicitor within 48 hours with indemnity insurance to cover local authority searches. Case completed within 8 days of initial enquiry.
*All rates are subject to criteria so in some case rates can be under 0.79% per month on a first charge and 0.99% on a second charge.*
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