At Enness, we have access to a wide range of lenders who are happy to work with clients with unusual circumstances or complex income streams. We also work with lenders who provide a range of bridging loans, from regulated bridges for residential properties to unregulated commercial bridging finance. I recently used one such lender to assist a client with bridging finance who urgently needed to complete within two weeks, as she otherwise risked losing her property. My client owned a share in a 40-acre farm, having agreed to buy £2million of the property initially and then buy the remaining £2million two years later.
She approached me two weeks before the due date for this, so speed was absolutely of the essence. The farm included a farm house (her residence), a cottage let to a farmer on a lifetime tenancy (a serious problem for many lenders), an Olympic horse arena, stables and a mobile home. The stables and mobile home were also let.
My client also required a 24-month bridge, which is an extremely unusual request. She intended to repay the loan by selling another plot of land, but this was expected to take a long time, so a typical 12-month bridge would not have been appropriate. However, as she lived on the land, this would generally mean the bridge would be a regulated loan; regulated bridging loans can’t be longer than 12 months.
Fortunately, the lender acknowledged the farm house she lived in only took up a minimal amount of the 40-acre commercial plot; they therefore classified the bridge as a commercial loan, meaning they could extend the terms to 24 months. The lender was also prepared to retain the interest, allowing the client to repay both the loan and interest upon the sale of her land.
They provided this loan at a very low rate of 0.75% a month, a record rate for commercial bridging finance. The deal was completed within two weeks as they did not need to assess her income. My client was understandably delighted with this solution; this is a clear example of how we are able to assist on the most complex of cases in a timely and efficient manner.
The most important thing is that your case is presented in the right way; a mortgage broker such as Enness can assist you with this, as we have a wealth of experience in securing cheap bridging finance for our clients.