Refurbishment Bridging Loan

Deal Structure

£3.2m gross facility

67.5% Loan To GDV

2.5% Arrangement Fee

Interest at 1% pcm

100% Loan to Cost, with Additional Security provided

Deal Summary

Funding was required by an existing client to refinance a 1st charge and 2nd charge loan on a large property near Kensington. The property was to be extended and sold.

Renovations had started but stalled on the property, with a contractor going into administration part way through the works.

The client had a new builder in place who was ready to re-start the project straight away.

Positive Commercial Finance facilitated a deal that allowed the client to agree a portion of debt forgiveness with one of the existing lenders, and provided enough funds to complete the project so the client could ultimately realise the equity/ profit he had in the project.

The loan completed quickly, despite a couple of hurdles along the way.

The house will be marketed for sale within the next month and the works are now progressing rapidly.