Bridging Loans Case Studies
Mr. B. & Mr G. from London - £240k Bridging Loan, 3 months.
Three brothers ran a sucessful manufacturing company in South London. Following a long stretch of ill health, one of the brothers decided to leave the company at short notice wanted to sell the business to realise his share.
The other brothers wanted to continue running the company so the approached us to seek funding in order to buy him out of the business and to keep the business running smoothly through the takeover.
We were able to secure enough money, secured on the companies business premises , to buy the partner out of the business, allowing the remaining brothers time to secure more permenant arrangements.
Mrs L from Whitstable - £125k Bridging Loan, 1 month
Mrs L wanted to build up a small portfolio of investment properties for her retirement. Following years of local research she felt the best way forward would be to purchase the properties at auction. She was successful in her bid for a property at the first auction she attended, managing to secure a property at about £40k below the market value.
A deposit of £22,000 was paid at the auction rooms and an application was made to her mortgage company for the balance.
Whilst the high street lender would consider a loan of up to 85%, this was based on the purchase price rather than the market value.
Fortunately, our bridging loans are based on the market value of a property,which enabled us to fund the purchase and find another mortgage company prepared to lend on the same basis.
G.W from Leeds - £430k Bridging Loan, six months.
A property developer sourced a farm plot various cottages, outbuildings and 5 acres of land in Yorkshire. Knowing the area well, the developer realised the land had good potential.
Although the developer had previous experience with similar size projects he found that his bank would not lend him the total he needed to complete the project, so bridging finance was raised to complete the first phase of rennovation to increase the value to a mortgageable level.
Mr & Mrs S from Edinburgh - £135k Bridging Loan, 4 months
Overseas property purchased by Mr & Mrs S, a retired couple who had decided to emigrate to Spain to be closer to their grandchildren.
Having agreed terms and a completion date on a new apartment near Barcelona, they found themselves with a last minute hitch when the purchaser of their current property dropped out. Within 3 days we were able to provide a loan secured on the property for sale, allowing them to complete on the purchase of the Spanish apartment as planned.
Mr. M. from Exeter - £40k Bridging Loan, six months.
Mr. M inherited his mothers house and intended to renovate the property for re-sale. To achieve this he intended remortgaging the property to cover the cost of works which should have been a straight forward proposition. Unfortunately whilst applying for the mortgage he commenced work by stripping out all of the old fixtures and fittings.When the surveyor valued the property, it was deemed uninhabitable due to the condition and the mortgage was refused.
Mr. M. approached us and we arranged a £40,000 bridging loan over a six month period to cover the cost of refurbishment. Once the work had been completed, Mr. M. was able to sell the property at full market value.
Mrs K from Southend - £35k Bridging Loan, 4 months
Mrs. K. agreed to purchase at auction a terraced property previously used as student accommodation for £39,000 paying the initial deposit from her own funds and exchanging contracts. The bank had provided Mrs. K with an agreement in principle for mortgaging the balance.
On application, it transpired that a CCJ and mortgage arrears were lodged against Mrs. K. and the bank retracted their offer. With only four days to go before completion date, we arranged a four month bridging loan to enable her to complete and subsequently arranged for the loan to be redeemed with a more suitable mortgage from a a buy-to-let lender.
