Funding a new build home
United Trust Bank’s Bridging Department provided a £138,000 facility with a 12 month term to enable our customers to build a new home for their retirement.
Our customer, a retired builder owned a house with a large plot of land. His existing home was too large for his and his wife’s needs and they didn’t wish to relocate. The solution was to divide their property into two plots and build a bungalow on the land.
Our customers had entered into a JCT contract with a local building firm and preliminary works had already started at the time of our loan. The customers demonstrated that together with the bridging loan, they had sufficient funds to complete the development.
The Bank’s security comprised a first charge over the whole of the site. When the new bungalow is completed the customers will vacate their existing house the sale of which will repay the bridging loan.
This loan is a good example of how a short term loan can be used for bespoke development finance.
Facility Amount: £138,000
LTV: 34 %