Loan amount:
£1,250,000
Property Value:
£1,790,000
LTV:
70%
Initial circumstance
One of our regular clients recently got in touch regarding their development purchase. The property had planning permission in place to convert the singular residential dwelling into flats. Having previously used a short-term loan to buy the property, the client needed a bridging loan as the initial term was ending.
The client had sent a request to the council to increase their planning permission with some new change requests and were waiting for approval.
The client was under pressure from their previous lender, so we were more than happy to support and provide them the additional time needed to enhance their planning permission.
Solutions
Within the property grounds, there were several car parks – each with their own title. The borrower wanted to keep one of the titles separate from the rest of the asset, for a different development. Understanding the importance of keeping the title separate for our client, we took a view on their request.
Our underwriter communicated with the valuer to ensure the value would be intact if we were to separate the title and the security of the asset was in line with all. Upon conducting the report, our valuer was more than satisfied and the client would also not need to require any additional security.
We were able to complete by the given deadline, as well as create a bespoke package for our returning client.
Benefits
We went the extra mile to tailor our loan to incorporate their potential future business plans.
Our products were flexible enough and the dedicated underwriter was on the case to ensure valuers, legals and the client were kept in the loop.
The client did not go over the term of his original loan and they had the breathing space and time to pick the most optimum development loan for their conversion. They would also return to try out our development exit loan, so they do not have to pay any extra costs once the development was completed
By making smart choices and using our bridging loans the client benefited in more ways than one.
Further reading:
- Featured Product: Permitted & Light Development Bridging Loans
- Tool: Bridging Loan Calculator
- Guide: A Guide to conversion, refurbishment and renovation
- Blog: How much will you spend on property renovation costs and is it possible to lower the bill?
- Blog: What are the changes to planning permission? What you need to know
