United Trust Bank (UTB) recently completed a bridging loan enabling a property developer to acquire a property and undertake a full and extensive refurbishment. The developer, a previous customer of the Bank, secured the £1.1m loan over several properties and this allowed him to fund all the costs on the project, including the purchase, stamp duty, legal costs and refurbishment works.
The property is a detached house in leafy Hertfordshire with plans for a substantial extension and renovation under permitted development rights. Planned works included converting the garage to a reception room and constructing a rear extension to create a new large kitchen/dining room.
The developer’s situation at the time of making the proposal was not uncommon. He was asset rich but cash poor and when this opportunity arose, he didn’t have the funds on hand to acquire the property, let alone complete the project.
As a previous customer of UTB, he knew that the Bank had the experience and the ability to move swiftly, even when there were multiple securities involved. Having discussed the options with his broker they decided to approach UTB for the entire funding required.
UTB’s bridging team immediately began assessing the borrower’s portfolio and it was suggested that UTB would take security over the subject property, the client’s main residence and a mixed use commercial property comprising 4 flats, a hairdressers and a takeaway – not a typical arrangement!
The facility completed recently and works are well underway. The project should take approximately 4-5 months to complete and if all goes to plan, the property will be marketed towards the end of the year.
Nick Warren, Business Development Manager, United Trust Bank said:
“It’s always great to see customers returning to UTB and we were delighted to be able to put together a financial solution which enabled our borrower to acquire and subsequently undertake this substantial refurbishment project. Bridging finance is a highly versatile tool and at UTB we’re always happy to consider more complex security structures if that’s what it takes to meet the needs of the customer, the broker and the Bank.”
Loan size: £1.2m
Term: 12 months