Holme Finance Bridging Solutions funds developer’s derelict ambition
Holme Finance Bridging Solutions (HFBS) fund a developer’s derelict ambition and it pays off with the property valued with a projected one hundred and forty five thousand pound profit.
When a developer saw the potential in a derelict property bought for £80,000 cash, HFBS were approached to advance of £30,895 as a first charge so he could start the development.
Three weeks after the developer was ready for the final tranche of £26,895 to complete the work.
Dan Yendall-Collings, senior underwriter at HFBS says:
“This was a derelict property, you could see right through the second floor, the attic and see daylight!
He was clearly a very experienced developer because after spending the first advance it was watertight, the damp proofing complete, a new roof, and new windows and doors.
The joists and floors had been reinstated with a staircase and the outside had been rendered with the garden landscaped – surprisingly all within three weeks.
After spending the first loan of £30,895, the developer successfully increased the property value from £80,000 to £140,000.
This was hugely positive to hear, but even better, the completion valuation is expected to see the property worth in the region of £200,000-225,000.”
HFBS advanced the first bridging loan of £30,895 and then a second of £25,000, plus fees, to complete the internal fittings, kitchen and bathroom, central heating system and final decorations.
A valuation was required due to the extreme nature of the property but from application to funds issued the first deal completed in 10 days and the second in just seven.
HFBS issued a £30,895 bridging loan as a first charge over a 12 month term at 1.75% per month plus £25,000 as a second charge over a 11 month term at 1.75% per month.