UTB’s customer had finished the development of an impressive 5 bedroom house in sought after Wimbledon financed by way of two facilities. The smaller loan was provided by a private lender who now required urgent repayment and, even though the house was on the market for sale, could not wait for a buyer to be found before receiving their money back.
As security for the loan, our customer offered us a second charge to replace the private lender’s second charge. The existing first charge from a High Street lender remained in place.
The house is expected to sell for more than £5m which will be more than sufficient to repay both the £1.6m UTB bridging loan and the first charge development finance facility.
Loan of £1,627,000 – 52% LTV