Loan to purchase two properties on one title as a prelude to development finance

Our customer is a company which was looking to obtain funding to complete on the purchase of both a house and a derelict bungalow which were on one title.

The loan was intended solely to enable our customer to complete the purchase of the property. No works will be undertaken during the term of the bridging loan, which will be repaid by way of a development finance facility once planning permission to demolish and redevelop the bungalow has been obtained.

One of the issues faced by the Bridging Department was dealing with one of the two guarantors who currently resides in an offshore jurisdiction. Fortunately, he had over three decades of experience in the construction and property development business, including numerous redevelopments in London, and we were able to obtain sufficient references to ensure that the loan successfully completed.

Bridging loan: £ 553,000

LTV 50%