Fast bridging loan to complete development project
When an investment property for development didn’t have the funds to complete the development HFBS were approached to help out.
The client had purchased an investment property for £244,000 and spent £250,000 on the building works but due to the recent price increase in building materials the planned budget became way off target.
With the cost of the development escalating and earmarked funds exhausted it seemed the only solution was to sell the development.
The development came to a halt and the client put the property on the market, valued at £700,000 in its unfinished state.
However, the advice of an estate agent recommended that a completed development would have much better chance of selling, and at the higher valuation of one million pounds.
Dan Yendall-Collings Senior Underwriter at HFBS commented:
“Taking the advice of the estate agent our client decided to proceed with the development pending approval of funding from ourselves.
Having looked at the development it was clear it was worth completing. It was put on the market for £700,000 in an incomplete state and valued at £1,000,000 once completed to a mortgagable state.
We were more than confident our funding would be enough to get the property completed to the standards required to secure the best sale price.”
HFBS received the application Friday, visited the site first thing the following Monday and transferred the funds 48 later. No valuation was required.
HFBS provided £90,000 of funding over 12 months at 0.99% with the planned sale of the development at £1,000,000 securing clearance of the loan.