Client circumstances:
Our client was currently living in a rental property which they had resided in for 13 years. Comprising of a six-bed semi-detached house with two flats attached on the same title, it had recently been put up for auction by the owner and listed as having a sitting tenant. With this seemingly deterring others, our client was the only bidder. Having submitted the winning bid, they had paid the deposit but urgently needed to raise the remaining balance of £298,000 or risk losing the asset, which they were planning to convert into three terraced townhouses. With the time ticking on their 28-day deadline, their broker immediately reached out to our regulated bridging team.
MT Finance solution:
Our regulated underwriting team received the case two days after the initial enquiry (and after terms had been issued) and the valuation was instructed the same day. This was received the next working day and costs undertaking were paid by the client to their solicitor two days after that. This enabled our underwriters to get to work and the first legal replies came in after another two days.
Four working days later – and within the client’s deadline – we completed a first charge bridging loan of £298,000 at 63% loan-to-value (LTV) of the property’s open market value (OMV) of £475,000. The term was set for nine months.
The benefits:
Our ability to move quickly ensured that we completed a first charge bridging loan in only 11 working days, enabling the client to make their final payment before the end of the 28-day deadline. They will now use the nine-month term to secure a development loan which will not only repay our bridging loan but will also cover the cost of converting the property into three townhouses. If this happens sooner, then they won’t face any exit fees or early repayment charges.
Find out more:
If your client is in urgent need of a regulated bridging loan then we are here to help. Suitable for a variety of purposes, including funding a residential auction purchase, preventing a chain break and unlocking equity, our products are designed to be fast, flexible and versatile. Get in touch to find out more.