Large Bridging Loan On Sussex Property While Waiting For Planning

Large Bridging Loan On Sussex Property While Waiting For Planning

Area
Sussex
Capital Raised
£1.5m

The Scenario

Our client came to us wanting to purchase a £1.5m residential property in Sussex, but their money was tied up in another property that wasn’t yet ready to sell.

However, the property they were selling to fund their purchase wasn’t going to complete any time soon.

Not only were they awaiting approval of planning permission for the property, but it was also undergoing some minor refurbishments that needed to complete before it went on the market.

Selling their property before these two issues were resolved was not an option, as they’d lose a significant portion of the property’s potential value. However, they also couldn’t delay their purchase of the new Sussex home or they’d lose it to another buyer.

To top it off, their existing residence was also sold subject to contract to provide the deposit money for their new purchase, adding extra pressure to the deal.

The Solution

We recommended a bridging finance solution to raise the £1.5m, secured against the property awaiting planning and refurbishment. This released the funds for the clients to complete their new purchase quickly and secure their new residential home.

It also provided the flexibility for their repayments to come from the sale of their existing property after the planning permission was granted, with the shortfall coming from a minor refinance on the purchase property.

The lender was able to work to the timescales required, and communication between all parties was quick and efficient. We ensured that all the key events married up, and were able to complete the deal for our client in four weeks.

The bridging finance product we recommended was the best solution for our client for three critical reasons:

  1. They could raise the large sum of capital as quickly as needed.

  2. They could repay the loan at any point within the term length without incurring additional penalties – this flexibility was essential due to the speculative nature of when the planning permission would be granted and the property could be sold.

  3. The bridging lender we chose was comfortable with the planning changes on the existing property – the planning effectively changed the use of the property, which is something that not all lenders will facilitate.

 

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. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

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.

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