Bridging Loan with Multiple Drawdowns Secured for 18-Bed HMO Conversion

Bridging Loan with Multiple Drawdowns Secured for 18-Bed HMO Conversion

Area
Kent
Capital Raised
£1.2m

The Scenario

Our client was an ambitious property investor, looking to fund the conversion of their commercial property into an 18-bed HMO.

They had successfully arranged change of use permissions for the development work, despite it being partly grade 2 listed, and now needed a flexible funding solution that could be drawn down throughout their project in the most cost-effective way possible.

The current value of the property was £675k, and they were looking to raise £1.2m for the complete works along with clearing an existing first charge mortgage on the property held with a high street bank.

But for such a complex development project, they required a bespoke funding solution to keep costs down and maximise flexibility.

The Solution

We spoke to a number of specialist development bridging lenders to discuss our clients’ project.

Although they were looking to raise £1.2m in total, they only needed about £300k on day one. This would mean that their loan to value would be around 50% for the first tranche – well within lending limits – and they would only pay interest on that £300k (not the full £1.2m) until their subsequent drawdown tranches, saving them a significant amount of money on interest.

In the long term, our client was looking to refinance with a standard buy to let mortgage based on the rental income of the property.

Bridging loan brokers aren’t required by the FCA to source your refinancing if that’s your exit plan – but at Clifton Private Finance, we always make sure we discuss long term plans with our clients’ and advise on whether they’ll be able to refinance at the end of their bridging loan.

It’s part of the reason our clients keep coming back to us time and time again.

Simon Mullins

Finance Broker CeMAP

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Paige Dumpleton

Finance Broker CeMAP

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Jonathan Moffatt

Head of Business Finance

Cardiff

0203 880 8890

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I have extensive experience securing finance for a wide range of businesses. Book a free telephone consultation with me at a time to suit you. 

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Alex Morris

Private Client Adviser

Bristol

0117 332 5061

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I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Scott Dutfield

Finance Broker

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you

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Carly Cheeseman

Head of International

Bristol

0117 457 9922

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I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Nick Kerley

Finance Broker

Cardiff

0117 959 5094

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Louis Levine

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Bristol

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Sam Baker

Finance Broker

Cardiff

0117 959 5094

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As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Fergus Allen

Senior Finance Broker

Cardiff

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

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Jacob Phipps

Finance Broker

Bristol

(+44) 0117 959 5094

Are you looking for a similar type of property finance?

I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.

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Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need. customDatabaseField-8455

Mathew Phillips

Senior Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Book a free telephone consultation with me at a time to suit you.

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Alex Chambers

Senior Private Client Adviser

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

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Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

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I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.

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Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

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I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you.

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