67% Loan to Market Value (85% Loan to 90 Day Value)
£595,000 loan size
Interest Rate 0.71% per month
2% Arrangement Fee
No Exit Fees
12 months term
Our clients had agreed to purchase a detached property in London which was last used as a Day Centre, having originally been constructed as a Public House many years ago. The property was in poor condition, and as such it was being purchased with Vacant Possession as it was not lettable.
The previous owner had applied for planning permission to convert to residential, however our clients saw additional value in enhancing that planning permission. The bridging loan was therefore used purely for the acquisition, and as a holding position until further planning consents were granted.
We were required to seek a lender who could offer a high Loan to Value given the type of property, with the option of interest being paid monthly, to keep the net loan amount as high as possible.
The clients settled for an option which came with an interest rate of 0.71% with no early redemption penalties or exit fees. Plans are currently being worked up for a revised residential scheme which would enhance the return on investment.
Contact John Waddicker