Inspired Lending acts quickly to save the purchase of development site

By Bridging Loan Directory 18th June 2024

Inspired Lending was contacted to assist a property developer with the purchase of a new development site after one of their investors let them down at the last minute.

The developer had obtained a development finance facility with another lender to assist with the purchase and development costs.

While they had exchanged on the purchase of the new site, they had a shortfall of £400k in meeting the balance of the purchase price after one of their investors was no longer able to provide the expected funding.

The Inspired Lending team assessed all available options and was able to provide the borrower with terms for a 12 month loan facility to meet their funding shortfall.

The loan was secured by way of a 2^nd charge over the borrower’s portfolio of 7 HMO student-let properties in Hampshire at 70% LTV.

Given the short funding timeframe, it was agreed that a desktop valuation appraisal would be the best way of assessing value and meeting the deadline.

In addition, the existing 1^st charge lender on the portfolio did not typically provide consent to 2^nd charges but the Inspired Lending team had swift, open dialogue with both the incumbent lender and borrower to find a solution to facilitate agreement to the 2^nd legal charge.

The borrower provided all requested information in a timely fashion, and the desktop appraisal was delivered in 24 hours.

Legals were completed quickly, using title insurance to restrict legal due diligence to a minimum, and Inspired Lending were in position to complete the loan ahead of the purchase completion deadline.

Both the borrower and their solicitor commented on their immense satisfaction with the smooth process and lending approach.

Gavin Diamond, CEO of Inspired Lending said:

“This case is a perfect example of what we’re all about at Inspired Lending; delivering a speedy funding solution at a competitive price with a personal touch.

We were determined to find a sensible way to help the borrowers who found themselves in a difficult situation outside of their control.

Our own lending experience, private funding, expert professional panel and ability to take a pragmatic approach meant that we could deliver funding within a matter of days, enabling the developer to secure their new site and save their deposit.”