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 170 lenders.
MontpelierPF achieved terms at 68% net (interest rolled up above this) for a developer exit loan, secured against a semi commercial asset in London. Priced at an extremely attractive 0.65% per month and on a cululative/break value basis, despite leases not being created on/before completion. There was a shortfall in the level of funds required to settle the development finance lender but these were achieved by way of a 2nd charge (for business purposes) against the borrowers home, once again at the 0.65% per month. We were delighted to work with such a proactive can-do approach lender.
Development Exit at 68% net LTV
PBSA Bridging at 103% loan to contract purchase price
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
Bridging Finance Explained
Want to learn more about bridging finance?
If you are new to development finance and want learn more about how to procure finance visit our 'Bridging Finance Explained' page. Areas covered include:
The different uses for bridging finance
The costs involved in bridging finance
The advantages and disadvantages of bridging finance