Bridge finance for Yorkshire developer to buy one of his own houses at build price

Area
N Yorkshire
Capital Raised
£400K

Our client is an independent developer who specialises in small, high-spec residential projects in rural Yorkshire, reflecting local architectural styles and materials.

His most recent development was four houses in a village on the edge of the Howardian Hills, built in the local sandstone, with pantile roofs.

The Scenario

Two of the "mews style" houses were sold, the third was on the market, and he wanted to keep the fourth – a four-bedroom modern barn-style house – for himself.

He’d had the house independently valued at £750K, and was looking to buy it from his development company for a build-cost price of £500K.

He was looking for £400K of bridge finance to cover the gap before his current house was sold.

The Solution

We established that the most affordable finance would be if we secured the lending against both the property being purchased and his current home, to get the lowest possible rate.

But this case was still a bit of a challenge: lenders weren’t keen.

The first finance house we approached simply said it didn’t "meet their criteria". We managed to establish that they were uncomfortable about the fact that our client was buying the property from his own company.

A second lender was unhappy about a purchase price that was substantially below market valuation. They were prepared to lend – but at a significantly higher rate.

Persistence paid off, and we found a lender who was willing – at a good rate: 0.65%.

And they would accept the valuation our client had already paid for on his purchase property, instead of making him pay for another. Plus he could use their in-house solicitor, to keep the legal costs down.

The exit will be the sale of his current home, plus a small mortgage on the new barn. A good result.

Mortgage broker Sam ONeill Clifton Private Finance York

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.

Mathew Phillips

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.

Alex Chambers

Senior Finance Broker

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.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

Contact Us