• UTB’s Bridging division was approached to assist an experienced property development company wishing to purchase a dated flat to refurbish and sell on at a tidy profit.
• The flat was situated below the main residence of one of the company directors and was being offered for sale below market value. The borrower needed to act quickly to secure the purchase amongst stiff competition. The property was being sold for £280,000 but had considerable upside potential. Cost of refurbishment works were estimated at £28,000 with the finished project expected to achieve in the region of £600,000 once improvement works were complete.
• UTB were lending to the Ltd company and was able to secure the loan with a first charge on the investment property being purchased with a cross second charge on the company director’s main residence, valued at £900,000 with an outstanding mortgage of £97,000. The £320,400 total bridging facility secured against the two properties provided 100% of the purchase and works costs and represented a gross LTV of 38%.
• With the facility quickly agreed, the development company completed their purchase and commenced works.
|Borrower||Property Investment/ Development Company|
|Loan Type||Non-regulated bridging loan|
|Loan Purpose||•Acquisition and refurbishment of investment property|
|Special Features||• 100% funding of purchase and works costs|
• Multiple securities to facilitate loan amount required
• Below market value purchase