Bridging loan releases capital for a complex client

UTThe United Trust Bank Bridging team was approached by a high net worth individual who had purchased a dilapidated 1890 property in 1997. The property had been arranged as 3 flats and, over the years since purchasing, the borrower had spent several million pounds converting it back into a single dwelling. The borrower now lives at the property with his family and wished to be reimbursed for some of the expenditure on the house as well as have funds available to assist his daughter with the purchase of a property.

The borrower’s existing finance arrangements, secured against the property and which remain ahead of UTB, were complex. However, the Bank’s Bridging department has gained a great deal of experience in both structuring more complex loans and being able to work with existing complex financial arrangements. The loan was duly agreed and will be repaid from the borrower’s other financial resources.

UTB’s Head of Bridging, Alan Margolis, commented “At UTB we are used to seeing and assisting with the two extremes of short term finance. On the one hand there are the straightforward cases such as borrowers using our loans to facilitate a downsizing, and on the other, deals that are essentially structured facilities albeit of a short term nature. This was a case in point. To understand and assess the nature of this particular exit – something which is essential for all bridging loans –   required an understanding of our customer’s complex financial affairs. Dealing with such a wide variety of cases is what makes working in this sector of the mortgage market so interesting”.

Loan Amount:       £767,000

LTV:                      34%