Bridging Finance
Whether it is a quick purchase or refinancing an existing asset, we are a bridging finance broker that works at pace to get the best solutions in place when you need it. Full market access means that we can secure the very best funding terms from one of over 150 lenders.
Case Study
Bridging Finance
Our seasoned developer client had exchanged contracts for a consented Purpose Built Student Accommodation scheme (PBSA) for a nominal consideration, with a long-stop completion. The developer utilised the 9mths between exchange and completion to improve the existing internal configuration through a Section 73 agreement, thus enabling an additional 27 beds. This uplift in the number of beds achieved an increase on the Residual Land Value of £1.5m, even before our client had completed on the acquisition.
The developer, who typically acquires half a dozen sites a year, needed to commit as little of his own funds as possible to enable completion, whilst ensuring he retains a healthy cashflow.
Facility Provided: We secured bridging finance; leveraged against the uplifted Residual Land Value for this purchase, rather than against the contract purchase price. Ultimately achieving a gross advance of 103% loan to contract purchase price / 94% net. Pricing was at 1% per month, with a 2% lender facility fee and no exit fee, over a 9 month term