United Trust Bank was approached to finance the purchase and subsequent development of a former Grade 2 listed building in London. The development would create 37 apartments plus 2,620 sq.ft of A1 and 3,636 sq.ft of A3 use, incorporating conversion and new build.
The applicant was initially introduced to the Bank’s Bridging team who were able to lend against the subject property plus take 2nd charges on a portfolio of ‘Buy to Let’ investment properties.
Agreeing a bridging loan for 90% of the £2.2m purchase price the Bank enabled the developer to secure the site within the 28 day completion deadline.
Following the purchase, the Development Finance team were able to consider and provide a facility of £4.2m to cover 100% of the build costs, Section 106 and CIL payments plus interest and fees to cover an 18 month term. The bridging loan was restructured in such a way as to release the development property from their security package and works have progressed on the development
under the terms of a fixed price contract.
The 2nd charge bridging loan facility of £2m remains in place at 65% LTV secured on the ‘Buy to Let’ portfolio and this enables the borrower to retain the attractive, historic fixed rates with their ‘Buy to Let’ funders.
Bridging Loan: £2m
Development Loan: £4.2m