Bridging loan for a developer: the right advice, at a better rate

Area
Kent
Capital Raised
£260K

The Scenario

Our client is a developer who was looking for finance to complete work on one of three houses in a small-scale development in Canterbury. She lives in the first property to be finished, and was looking for finance to complete work on the second property. When that house is sold she can proceed with work on the third property.

The first broker she approached proposed securing finance against the property she wants to complete. Unfortunately the lender they took her application to doesn’t handle development finance so they turned her down.

Somewhat disheartened, she then approached a lender directly. Unbeknown to her, they weren’t regulated lenders, and were unable to lend against property that is more than 40% occupied by the borrower. They proposed taking a charge on all three properties (to bring the occupancy ratio down to 33%).

The rate they offered was 0.85%, with retained interest.  

The Solution

The client came to us, concerned about why a charge was required against all three properties: it seemed unnecessary, and would prevent her raising further finance against them.

We found her a regulated lender who would secure against just the property she is living in.

We did need to include the other three directors of the property holding company as signatories to the loan (though not offering any security), because the client’s home is “landlocked” by the other two properties, and our lender needed to be assured that access to it would always be agreed.

The rate we secured for her was 0.69%, with rolled-up interest.

Our bridging loan service

Clifton Private Finance broker review

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.

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