Bridging loan for development project

THE SCENARIO

Although Enness is a whole of market lender, this doesn’t stop us from building close relationships with specific lenders. We have recently been working with an extremely quick and efficient lender, who have repeatedly enabled us to find speedy resolutions for our clients.

Most recently, I used this lender for a client in her thirties. My client runs a development company with her husband, and was an absolute pleasure to work with. She approached Enness after her husband had phoned last year whilst considering brokers. Fortunately, we lived up to their expectations, and were able to find a solution.

My client needed funding to finish off a development property, and then to finance her next purchase. Due to issues with her contractor, there was outstanding work on the last property, which her company owns.

The property in questions was in Hertfordshire, valued at £1.2million. Obviously, this was a big project for her company—so it was extremely problematic when her contractor went into liquidation. This meant that there was unfinished work, the build regulations were yet to be signed, and she had no new-build warranty.

OUR SOLUTION

Fortunately, she managed to obtain a new warranty—my client therefore needed a bridging loan for development to finish the work and forward finance the next project. As mentioned, I used a bridging lender who we work with frequently. They are particularly efficient; the valuation report was booked and returned within a week, and in my opinion they are one of the quickest bridging lenders in the market. This was ideal as my client needed a quick turnaround.

This lender was able to match the loan to value (LTV) required, with a great rate. The final product was a loan of £174,000 at a rate of 0.89%, retained for a period of 12 months. This was a great result, and I look forward to working with both this client and this lender again in the future.

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