Short-term finance arranged on part-exchange property

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

LTV: 70%

Rate: 0.69% pm

Term: 12 months

Lender arrangement fee: 1.95%

Completion date: September 2014

16th September 2014