These case studies show how short term bridging finance and development finance have successfully assisted clients in achieving their goals.
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A client of Mint Bridging had initiated a purchase of a three bedroom, detached home. Based in Whitstable, Kent, they were experienced developers so this property was to be fully refurbished and sold on as soon as possible. By using Permitted Development Rights in extending the floor space, the property would then be listed on the open market once completed. As a result of Mint’s asset management team analysing the client’s background checks and undertaking extensive market research, the findings were submitted to Mint’s core team for review. This was achieved prior to meeting the client, in order to be more time & cost effective.
From reviewing the findings, it became clear that an enhanced realisation was an opportunity, achieved by amending the initial scheme. Mint was more than satisfied in providing the additional funds to the client so they could crystallise the full latent property value. This took into account that Mint’s additional financial input would now exceed the agreed loan-to-value-ratio. With a hands on approach, Mint’s Quantity Surveyor made multiple trips to the property site throughout, to validate that the project was reaching its targets. As the development portion of the loan was drawn into stages, this was presented with the monthly QS valuation certificates, assuring Mint the client was on track and also aiding the client in goal setting.
The client confirmed: “I had access to the decision makers at Mint. They were always available to discuss matters, outside of regular office hours. From the start, Mint demonstrated a clear understanding of our aims and displayed detailed knowledge of the property sector.”
Conversion of 4 barns
Facility of 1.5m for the conversion of four listed barns in Nottinghamshire. This was the fifth facility agreed with this developer and was a major step up for them from previous developments.
Part Built Development
An experienced residential developer acquired a part-built development, to build 6 detached houses, 3 of which were complete aside from final fix and practical sign off, and 3 of which were water tight but interior works hadn’t started.
Bridgebank lent the developer £565,000 against the site value providing the developer with sufficient funds to complete the development project and to realise his Sales from holding deposits.
The “Offer to Completion” process was complete within 10 days – a 3 month bridging loan which was fully repaid 3 weeks early!
Borrower purchased a property at auction. The property was originally built as a residential home, but had a planning change and was being used foroffices. The borrower, an experienced property investor, had a proposal to reinstate the planning consent to residential and to convert it to two apartments. Funds were provided which included taking security on an additional property with plenty of equity in his existing portfolio, which allowed us to provide sufficient money to lend 100% of purchase plus all of the conversion/modernisation costs. This loan completed inside 7 working days – a prime example of our ability to structure and engineer a deal that worked for the borrower and produce a result with speed and efficiency when needed.
Third Charge Bridging Loan
Central Bridging Loans, the only principal lender offering third change funding on the Bridging Loan Directory, has recently completed £150,000 as a third change on a property in Belgravia London.
- First mortgage £1.45M
- 2nd Mortgage £200K
- Property on market at £3.8M
- Third charge quoted at 1.65% pm
- Exit via sale of Belgravia property
Borrower purchased a portfolio of 5 flats in a block of 2 storey terraced apartments at a deep discount to value from a distressed seller. The loan of £175,000 was provided at 54% LTV and our funds enabled the borrower to acquire the flats quickly as part of his extensive residential investment portfolio. As the borrower had cash available for light refurbishment of the flats to enhance value and to secure tenants, the 6 month loan term was ample time to refurbish, tenant and to secure a Buy To Let remortgage to repay the bridging loan on time.
Short term stock finance for outdoor furniture supplier
Leisurebench imports top range outdoor furniture to sell onto commercial clients in the pub and hotel trade and the public sector and also direct to customers through their Brackenstyle brand.
They approached FundingKnight for business funding when their usual banks were unable to offer a business loan on suitable terms.
FundingKnight worked with Leisurebench to create a bespoke loan of £110,000. As the firm needed to conserve cashflow whilst importing the stock, we arranged an upfront payment holiday. Once loan repayments began, the loan which ran for seven months and was funded at 11%, was paid back in 4 instalments.
“FundingKnight gave us flexible terms at the right price; refreshingly simple, common sense banking. We’re already planning another loan with FundingKnight.”
Saul Musson, MD, Leisurebench
Finance provider: FundingKnight