We were approached by existing clients who had purchased a commercial building with the aid of a bridging facility.
The property was divided into two separate sections on a corner plot and following the purchase, our clients obtained planning permission to demolish one section and build three new 1550 sq ft town houses. The other section is currently divided into offices and partially let.
The future plan was to obtain planning for additional residential units on the section in due course.
An initial loan of £1.99m was advanced to clear the outstanding bridging facility, cover 100% build costs for the three houses and provide the borrower with some working capital. At this point we were secured partly by a residential development and partly by a let office building.
The development of the three town houses was well underway when our clients secured planning on the second section of the site for a further three houses. We subsequently agreed to provide a further £511k to fund the additional works.
As we were continuing to rely on the same security, rather than progressing a new loan with new documentation, we topped up the original facility. This was both time and cost effective for the client.
Loan Amount: £2,500,000
Loan to Value: 60%