70% of the 180 Day Value
73% of the purchase price
Interest Rate at 0.99% per month, with interest paid monthly.
2% Arrangement Fee
No exit fee from month 3 onwards
6 months term.
Our clients run a successful building contractor business and they were given the opportunity to purchase the property they ran their business from. Whilst the purchase had been agreed some time ago, the vendor suffered a bereavement and so the purchase became protracted. However, a strict deadline was then issued, and so the buyers needed to act quickly.
Initially a 14 day completion was requested, and whilst the bridging lender appeared to be able to meet that request, the completion date was relaxed a little, allowing further time to get the bridging loan concluded.
We are currently working on an Exit strategy to this deal, which will be a refinance to a more conventional commercial mortgage, to coincide with the 3 month “anniversary” of the bridging loan, meaning there will be no exit penalties.