Bridging Loan For Property Developer Awaiting Sale Of Most Recent Development In Hampshire

Entrepreneurial developers don’t want to wait while other adventurers come along and buy up the next building opportunity from under their noses. And they want to keep their builders busy working – for them.

The Scenario

Our client was an experienced property developer wanting a bridging loan against a completed development in Portsmouth.

There was no debt on the land, and she had paid for the build in cash. She didn’t want to wait two to three months for a sale to be completed before being able to crack on with the next development opportunity.

The catch was: when it came to processing the land title documentation, it emerged that there were two three-bedroom semi-detached houses built on the single land title.

When two properties are constructed on a single block, separating the land into two titles is impossible until they are sold. Unless you sell them to yourself and incur all the legal expenses and stamp duty.

The Solution

The lender, who was taking a charge against the land title, was expecting our client should repay the total loan when just one of the two houses was sold.

We persuaded them that the loan should be redeemed only on the sale of both houses, leaving our client free to proceed as a cash buyer in pursuing her next development opportunity.

In a similar situation? Call our bridging loan team on 0117 959 5094 or use our bridging loan calculator to get an indicative quote