Lendhub has recently completed a £580,000 bridging loan so that its client could raise capital to refurbish a number of properties in their portfolio
To complete the loan within the given timescales, Lendhub had to overcome a few challenges.
The property used for security was arranged as three self-contained flats, however the borrower’s solicitor was unable to provide formal planning consents for the existing layout.
After referring back to the surveyor for a revised valuation to compensate for the potential enforcement costs, an indemnity policy was obtained and the new valuation was used to proceed with the loan.
However, the borrower’s application to register the property title was delayed due to Covid-19.
Rather than wait for the land registry to be processed, Lendhub decided to accept an undertaking from the borrower to register the ownership and move forward to completion.
The 12 month bridging loan was agreed at 67% LTV at 0.70% per month.
The borrower has a couple of exit strategy options, including development finance upon achieving planning permission.
Max Herman, lending manager at Lendhub, commented: “We are really pleased to of been able to assist this borrower.”
“We were able to demonstrate a high level of service by working with all associates involved to find solutions to get the deal over the line.