Gross Loan Amount:
£257,000
Property Value:
£400,000
LTV:
64%
Initial Circumstances
A new broker came to us with a borrower who needed a bridge loan. The borrower purchased a grade two listed former church from auction to convert into a residential property.
The residential planning permission by the council had expired and needed renewing. They also needed to pay the balance to complete the purchase to the auction house before the deadline, with the added risk of losing their deposit.
MFS Solutions
As this was an auction purchase, the valuer and lawyers were informed simultaneously with the valuation report back within 4 days.
This was an old church being converted into a residential property. We were initially informed that this would require a longer time to get the valuation done but due to our relationship with the valuer we were able to expedite this.
Our normal residential rates were also applied, and the borrower was extremely happy with this. Some lenders would not be happy to lend on grade II listed building or increase the rate to do so.
The Benefits
The borrower had the breathing space to purchase the property and renew the planning permission simultaneously.
As a lender who creates long-lasting relationships, we were able to use one of our trusted valuers to complete the valuation within four days of the enquiry coming through to us.
Once the bridging loan was completed, the planning permission will be renewed, the exit strategy will be to source a development finance loan.
Further reading:
- Featured Product: Auction Bridging Loan
- Explainer Video: Auction Bridging Loans
- Tool: Bridging Loan Calculator
- Guide: A Guide to Property Auctions
- Guide: A Guide to conversion, refurbishment and renovation
- Blog: How to buy a derelict property and bring it back to life
