Client circumstances:
Our client urgently required a bridging loan of £66,300 to fund the completion of an annex in their relative’s garden. Our client was unfortunately experiencing deteriorating health including a lack of mobility and wanted to be closer to family while keeping their independence. In order to fund the works, our client was looking to leverage the equity in their main residence which had an on the market value of £164,000. The annex was roughly 50% complete but no payment to the builders had been made and they were unable to continue without receiving the full costs. Understanding the delicacy of the situation, the client’s broker immediately reached out to our regulated team as it was imperative that the project was not disrupted.
MT Finance solution:
This was treated as a high priority case as soon as we received it. The legal checklist was sent out the very same day with the valuation taking place after two working days. The valuation report was returned within another three. In a total of 10 working days, we delivered a second charge bridging loan of £66,300 against the client’s main residence at 55% loan to value of the OMV. The term was set at 12 months and as with all our bridging loans, there are no exit fees or early repayment charges.
The benefits:
Our ability to complete in only 10 working days ensured that the works of the annex could continue uninterrupted. Once finished, the client will move into the annex which will allow them to sell their main residence on the open market. The proceeds of this sale will then be used to repay their bridging loan. If this happens earlier than the 12-month term, they won’t face any additional fees or ERCs.