70% Loan to value & 100% of purchase price
Interest Rate at 1% per month
2% Arrangement Fee
No exit fees
12 months term
Our client had “won” the bidding at Auction for the purchase of an ex-Clinic with development potential. The security type and the fact that planning consent had to be applied for after the purchase had completed made this quite a speculative purchase for the client. As such, lending options were not vast. In addition, the client wanted to offer additional security in lieu of his “deposit”, and on a second charge basis.
The purchase/ project also had to work from a development perspective, given the bridging loan would be refinanced to a development facility. With input from a planning consultant and an architect, as well as the clients own QS, it was clearly demonstrated that this would be a viable development project.
Auction conditions meant we had a strict purchase deadline, and a number of valuation reports were required, given the security was over multiple securities.
We identified the most appropriate Auction Finance lender for the job, and indicative terms were issued quickly, followed by valuations being instructed promptly.
At the eleventh hour, we were still waiting for one of the first charge holders on an additional security to give consent, but with a pro-active legal team and considerable “encouragement” from the client, the consent arrived and the loan completed the following day.