United Trust Bank’s Bridging team was approached by a broker acting on behalf of a client who wished to purchase a large, detached house in London but with various challenges to overcome.
The house was arranged as three flats with planning permission in place to return the house to a single dwelling. It was the borrower’s intention to complete the refurbishment and have the property as their main home. In its current configuration and condition the borrower could not obtain a conventional mortgage to complete the purchase. The property also showed signs of structural movement which required underpinning.
A bridging loan would provide the borrower with the funds required to buy and renovate the property with the exit being a refinance to a residential mortgage once the transformation was complete.
A further complication was that the house remained under probate and was being purchased as a sub-sale from someone who had bought the house at auction; completion of the purchase being required within 10 days of probate being granted.
The application was received by UTB on the 12th of April. Despite a full valuation, structural report and detailed schedule of works being required, the loan completed on the 29th April within 10 days of the grant of probate.
|Loan Type||Bridging Finance|
|Project type||Purchase of unmortgageable property|
|Special Features||• Purchase via sub-sale required swiftly upon grant of probate|
• Property configured as three flats requiring conversion back to a single dwelling
• Structural issues