Bridging loan to buy and develop 4-bed house
We were approached by a married couple who needed finance to help buy a dilapidated 4-bed house which they wanted to develop.
The couple are full-time property developers and when talking through their requirements, it became clear that they had a Plan A and a Plan B for the property:
- Plan A: Subject to planning permission, convert the property into flats, retain the freehold of the building and sell the flats on long leases.
- Plan B: Renovate the house to a high standard and sell on.
Looking at their business plan, it was clear that Plan A would make our clients more money but the figures for Plan B also stacked up which meant that finding a lender would be fairly straightforward.
We contacted a specialist bank, which not only has a slick application process but it also has some extremely competitive bridging rates for these types of deals.
Within a day, we had obtained an agreement in principle, so we submitted a full application on our clients’ behalf.
The following terms were promptly agreed allowing our clients to successfully complete the purchase: