Our client is an experienced property developer who was selling a house that he had purchased and refurbished. Unusually, when he bought the property he was given another property (which was unencumbered) in part-exchange.
The developer had refurbished the house being sold using a bridging loan secured on it and this loan needed to be cleared before the sale could proceed. So, we arranged short-term finance on the unencumbered property (which was valued at £275k) in order to pay off the bridging loan.
Property value: £275,000
Loan amount: £192,500
Rate: 0.69% pm
Term: 12 months
Lender arrangement fee: 1.95%
Completion date: September 2014