Background: The borrower approached us after they were in a difficult situation with another one of their developments. Due to circumstances out of their control on their development, there was a funding gap that required to be filled.
Product: Residential Bridge
Term: 12 Months
Exit Strategy: Sale of other development
Total Facility: £2,325,000
Interest Rate: 0.75% per month
Quirks: The borrower had been let down by another lender after the valuation came in lower than expected and they were unable to advance the borrower enough funds with their LTV restrictions.
Re-address of existing valuation report
Part-serviced interest to maximise the amount the borrower received.
Exit of our loan is from a development that we do not have a charge over.
Problems that arose prior to completion:Our exit strategy was the sale of the borrowers other development project. The other lender would not release the PMS report and so Lendhub directors went on site to check that we were releasing sufficient funds to cover the shortfall.
Why we funded it: Comfort with borrower and ability to finish other scheme. Willingness to build a relationship
Time to completion: 17 Working Days
Bridging Case Study
EXCHANGE AND COMPLETE
Background: One of our direct customers contacted us after they had exchanged on a 3 Bed- Semi Detached House they won in an auction. They required funds to help them complete on the transaction, and also wanted to work with a lender who could work allow them to modify and enhance the security property, without being too involved and holding funds back on retention.
Location:Reading Product:Auction Term:6 Months Exit Strategy:Refinance with HMO Total Facility: £311,250 Valuation: £415,000
LTV: 75% Interest Rate: 0.85% per month
Quirks:The borrower intended to undertake a programme of refurbishment works to the property, and fund these works themselves without authorisation from a QS or PM.
Problems that arose prior to completion:Upon receipt of the independent valuation report, it was indicated that the property was potentially at risk from structural damage. We instructed a structural engineer the same day to assess the property and verify the severity of the cracked walls.
Why we funded it: After speaking with the developer and understanding the nature of the proposed works and the professional team instructed to implement the works, we were able to gain comfort that the works would be done to a satisfactory standard allowing a smooth transition onto a long term HMO mortgage.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.