Castle Trust completes £1.37m heavy refurbishment bridging loan

By Bridging Loan Directory 24th August 2022

Castle Trust Bank has completed a £1.37m heavy refurbishment bridging loan, structured to enable a property investor to purchase the property and then increase their borrowing to finance the construction work once planning permission has been granted.

The specialist buy to Let and bridging lender worked with broker, Specialist Hub, to find a solution for a client who was purchasing two 2-bedroom flats which were to be converted to a family dwelling with side and rear extension, loft conversion, the installation of a rear upper and lower dormer, roof lights to the front and rear and a basement extension.

The purchase price of the property was £1,830,000 and the changes required planning permission, which had not been granted at the time of application. So, Castle Trust Bank structured a loan of £1,372,500 to enable the purchase of the property with a standard bridge loan product at 75% LTV, with the option for the client to then switch to a Heavy Refurbishment Bridge at 80% LTV when planning permission was granted.

This extra funding and an 18-month term would provide the client with the finance and time they required to complete the works.

Tony Sutton, Managing Director at Specialist Hub, says:

“Castle Trust Bank demonstrated their out of the box thinking to make this deal work before planning permission had been granted.

It’s not uncommon to come across complex bridging cases like this, but it’s unusual to work with a lender able to take such a pragmatic and flexible approach.”

Barry Searle, Managing Director of Property at Castle Trust Bank, says:

“This is a great example of our new dedicated bridging proposition in action.

We may have simplified our product range but we haven’t changed our flexible approach to structuring solutions that provide the finance clients need in a way that matches their exact requirements.”