Bridging Loan To Purchase And Convert Swindon Care Home Into Flats

The Scenario:

This client was referred to us by a colleague who was a long-standing client of ours. The new prospective borrower had an opportunity to buy a former care home in Swindon at a substantial market price discount - from £450,000 down to £360,000 - provided they were able to complete within two weeks, before the end of the financial year.

They had£170K to put down as a deposit, and had approached their existing financial provider for funding. They had got as far as valuation before being told the lender wouldn't consider the proposed change of use to flats. 

The client now had seven days to complete the transaction, or they would lose this substantial opportunity - and the costs they had sunk into it to date. 

The Solution:

We had to act very fast, by approaching an insititution we knew would consider change-of-use lending. 

We were able to have an offer for a £190,000 bridging loan with our client’s solicitors within 72 hours, giving them time to execute the purchase before the deadline.