Case Study: Funding 365 completes £6m development exit bridge at 75% LTV
Fast bridging lender Funding 365 completed a £6m development exit loan in South West London just 3 days before Christmas.
Specialist Broker Packager firm Capital & Equity PLC approached Funding 365 as their client needed an urgent bridging loan to refinance their development funding and increase their cashflow.
Timings were critical as the client wanted to exit their existing loan with another lender as soon as possible because they had exceeded their original term due to issues with their Main Contractor. Funding 365 worked closely with Capital & Equity PLC and the borrower – meeting numerous times on site – to ensure that the loan completed before the deadline.
The new build property contains 9 flats along with 3 commercial units on the ground floor which had minor works left to finish before the new build warranty could be put in place. The loan is for 9 months, with an LTV of 75% and will be exited by sale of the individual units.
Funding 365 Managing Director, Mike Strange, pictured, comments:
“We’ve seen a steady increase in development exit enquiries over the past year – and especially at the higher end of the market since we increased our standard loan size to £10million. Completing loans quickly is never an issue for us, and this loan went particularly smoothly thanks to the hard work and professionalism of the Team at Capital & Equity. Credit should also go to our underwriter on the case, Jon Brooks, and our valuation and legal partners who demonstrated their usual efficiency and dedication. In fact, this was just one of 6 loans that Funding 365 completed in the week before Christmas, so their dedication was pretty heroic really.”
Capital & Equity PLC Managing Director, Keith Robinson adds:
“It was a pleasure to work with the Directors and the Team at Funding 365 on this transaction. From initial site visit to completion, their hands-on approach and positive can-do attitude made the process simple and extremely efficient. Our client was up against tight deadlines and needed certainty that completion would take place on time. Funding 365’s speed of processing and communication throughout allowed us to complete quickly and within the client’s required timescales. Capital & Equity PLC look forward to working with the Funding 365 Team on many more future cases in 2018.”