Bridging Case Studies
Client A was due for an imminent eviction. He had been ill, missed mortgage payments and the arrears were now spiralling out of control. Client A had only a small mortgage on the property and lots of equity but could not remortgage due to the recent missed mortgage payments. We were able to obtain a small second charge bridging loan, secured on the subject’s property, to clear the arrears and avoid repossession. We also guided the client in the methods required to prevent the eviction process, allowing time for the bridging loan to complete. We are now in the process of providing new finance to clear the original mortgage and second charge bridging loan, thus giving Client A am much needed new start.
Dream House At Auction
Client B bid for their dream house at auction. This property was also wanted by a number of other interested parties, including cash buyers. To secure the deal Client B was required to make an immediate offer, under the strict condition that completion must take place within 28 days of the auction date. We put a second charge bridge against the client’s current home and a first charge bridge on the new property. This resulted in the purchase being completed within 11 days, which was way ahead of expectation. Client B has now sold the original property and taken a small mortgage on the new property to repay our auction bridging loan.
Small Cleaning Business
Client C runs a small cleaning business. Due to an unexpected surge in business and to take advantage of a competitor’s slip, our client needed to purchase heavy industrial washing equipment within the month. We quickly arranged a bridge, secured against our clients business premises, allowing the necessary purchases to be made. The client was then able to repay the bridge within 4 months, due to increased turnover and profits.
Regular Property Developer
Client D was a regular property developer. Property development is now considered high risk by most high street lenders and even sources our client had used for many years declined further borrowing. As such our client was left without the finance required to complete his part of the finished building projects. We arranged finance secured on the part built
assets allowing our client to complete his project and ultimately preventing the closure of his business. Our client has now sold a number of completed units and has repaid our bridge after 8 months.
Large Tax Bill To Pay
Client E is one of our self-employed clients, who had a large tax bill to pay. He also needed extra finance to make his property marketable. Within a day we were able to arrange an agreement in principle and submitted an application on our clients’ behalf. We were able to quickly arrange the bridging loan to allow the customer to pay his tax bill on time. He was also able to start the work needed on his property and will shortly be able to market that property so that he can repay the loan.
Downsizing To A Smaller Property
Client F was downsizing and looking to purchase a new smaller property. She didn’t want to miss out on a new home she had set her sights on. Her existing property had some previous holiday lets. These Holiday lets had not been let out in over 4 years. As this property had a commercial element to it the client was struggling to find a lender. We were able to find her a willing lender who secured against both the new and existing properties. She didn’t lose out on her preferred new home and will repay the loan once her current property sells.
Repay Existing Mortgages
Client G owned 2 properties in London both with outstanding mortgages on them. The client’s mortgage was on an interest only basis and the term was coming to an end. We were able to swiftly arrange a bridging loan to repay the existing mortgage. The client was also able to borrow extra funds to consolidate existing debt. He will be repaying the loan as soon as one of his properties sells.
Purchase Industrial Building Over Market Value
Client H wanted to purchase a dilapidated industrial building for over the market value. He had been rejected by a few lenders already. The client intended to purchase this building and convert it under permitted development into two units. He wanted to borrow enough funds to buy the property and do the required work. He was also using a property in a separate company name as collateral. We managed to arrange some terms within 24 hours and swiftly made an application on behalf of the client. He will repay the incomplete property loan by sale of the refurbished units.
House Conversion To Flats
Client I owned an unencumbered house in South London that he was converting into 4 flats. He needed finance to do the full work. He had all the planning permissions necessary in place. As the property was wind and water tight we were able to swiftly arrange a bridging loan for heavy refurbishment work. The client planned to complete the work and sell 3 of the completed flats and repay the loan.
New Investment Purchase
The clients were looking to borrow some funds in order to complete the purchase and refurbishment of a new investment property. The clients had recently decided that they would like their investment properties to be in a Ltd company name, so UK Property Finance were able to guide them through the differences in the process for a Ltd company vs a personal name purchase.
The works to be done were not structural and did not require planning so we were able to obtain them a market leading standard bridging loan rate. The purchase was able to be used as sole security for the loan as the client intended to sell at a profit in order to exit the loan.
The bridging loan was able to be completed within 4 weeks allowing them to keep their vendors happy and get the works started.
We can provide many more bridging examples and more information on the different types of bridging loans available.