United Trust Bank’s Bridging team was approached by an experienced father & sons property development business seeking funding to acquire their next project property.
The borrowers had agreed to purchase an unmodernised end of terrace house with an annexe, both set on a large plot with potential for creation of an additional property on the site, subject to planning permission being obtained. There was considerable interest in the property when it was brought to the market and our customers needed to move quickly to secure the deal.
The borrowers wished to retain as much cash as they could for the project, and by offering a 2nd charge over one of their existing properties in addition to a 1st charge on the target property, UTB was able to fund 85% of the purchase price with an overall LTV of 68%. The borrowers had sufficient cash available to supply the balance of the purchase price and to redecorate the property to a suitable standard for letting
Once renovated, the borrowers intended to refinance with a Buy to Let mortgage and this would be used to repay the majority of the bridging loan. Any remaining balance would be settled from the sale proceeds of another property in the company’s investment portfolio which was about to be put on the market.
|Borrower||Family property development business|
|Loan Type||Bridging Finance|
|Loan Purpose||Purchase of an unmodernised property for investment|
|Special Features||– Property purchased had an annexe and large plot with future development potential|
– Combination of 1st and 2nd charges enabled UTB to provide 85% of the purchase price