United Trust Bank was approached by property developers with a strong track record of delivering high quality local schemes over the last 25 years.
The company had purchased an unmodernised house with a large 2.5 acre garden and by subdividing the grounds had achieved planning permission for the development of three new houses on the site, while retaining the existing house. Having sold off two of the adjacent building plots the company retained the original house and one of the building plot, both of which were now unencumbered.
The bridging team were approached to provide a capital raise secured against the plot containing the original house, which needed general refurbishment. The capital raise would be used to support several development projects in play, including the development they were partway through the build of on the adjacent plot. The borrowers had several potential exit strategies to choose from including funds from the sale of one of their other developments, the sale or refinance of the security property as it stood, or through a property improvement loan facility with UTB to refurbish and extend the existing house.
The loan satisfied the immediate cash flow needs of the company, with the 12-month term providing them with the flexibility to choose an exit that suited them best in the future.
|Borrower||Property Developer – Limited Company|
|Loan Type||Bridging Finance|
|Project type||Capital raise to fund development activity|
|Special Features||– Secured over part of original plot surrounded by ongoing development projects|
– Multiple potential exits