HFBS completes its largest bridging loan
The owner of a derelict central London property required bridging funding to complete a full-scale development project to achieve a sale price of £2 million pounds upon its completion.
The large semi-detached derelict property wasn’t mortgageable in its uninhabitable state so the developer approached Holme Finance Bridging Solutions (HFBS) for a funding solution to advance the development of the property.
Dan Yendall-Collings Senior Underwriter at HFBS commented:
“We couldn’t provide a desktop valuation, the nature of the property in its derelict condition meant we required a full valuation.
However upon receiving the valuation findings we were really pleased to hear that without development the property was worth 1 million pounds and after development would be worth 2 million pounds.
This provided the confidence we needed to move forward and approve the funding.”
The owner of the investment property had completed a schedule of works that were appropriately planned and costed ensuring that the £300,000 bridging loan would be all that was required to bring the property back to a habitable and mortgageable condition.
HFBS received the application on the 5th of April and instructed a valuation the same day.
The valuer visited the property three days later and provided a full report on the 11th of April at which time HFBS arranged to meet the client to agree contracts.
The funding was paid out on the 14th of April, just eight working days later.
Dan Yendall-Collings, commented:
“We are really proud to have made this one happen and know the developer’s intentions are achievable and well within their experience.
This wasn’t one of our quickest deals but it is the biggest. The fact it was a derelict shell slowed the process slightly, but with due diligence complete we were happy to make this happen and realise the huge return for the client.”
With significant equity, a clean credit status and a track record of successful developments, HFBS were happy to fund the £300,000 at 0.99% agreed over a 12-month term with a view to the property being renovated and sold within the term to settle the loan.