Bridging Finance Case Studies
AP Ltd was purchasing an upmarket hotel in Penzance, Cornwall worth
£1.2 million, and needed £780,000 within days to complete
the purchase. They approached First Property Finance when they were
already in their notice period. We were able to lend them the required
funds, and the loan completed shortly thereafter.
Mr O was purchasing
a semi - commercial premises in Hornsey, London. The shop and flat
above it were to be rented out. To secure the property he needed
to complete quickly and FPF were able to lend £227,000 on
the purchase price of £350,000. The loan completed within
9 days and was refinanced within 4 months.
Mr C is a property dealer who adds value to dilapidated properties
through complete refurbishment, and can only purchase through bridging
finance, due to the poor condition of the properties when he purchases
them. He is often able to refinance us out within a 3 month period,
once the majority of work has been completed. A typical example
was a property he purchased in E6, London for £140,000. First
Property Finance was able to lend him £105,000. The loan completed
within 15 days and was refinanced within 2 months.
Mr M, an experienced
chartered surveyor, agreed to purchase an investment property in
Finchley, NW London using a "Buy to Let" product from
a mainstream high street lender. Due to various essential repairs
a 100% retention was placed on the offer. This transaction was due
for completion imminently and was at risk of collapsing. We provided
a Bridging Loan for £255,000 on the purchase price of £340,000.
The loan was completed speedily within 7 days which enabled Mr M
to complete the purchase. The work was carried out and refinanced
within a 3 month period.
Mrs H agreed
to purchase an investment property using a 'Buy to Let' mortgage from a mainstream high street lender. A 100% retention was placed
on the offer due to various repairs required, much to our client's
surprise. This transaction was due for completion imminently and
the purchase was at risk of collapsing. We provided a Bridging Loan quickly which enabled Mrs H to complete the purchase. The work was
then carried out and refinanced with the original mainstream lender
within a three month period.
Mr C needed finance to fund his overseas property purchase. We provided
a three month loan of £250,000 on his existing home in Barnsley
worth £330,000, enabling him to complete the purchase of his
dream home. The deal completed within days and was refinanced within
3 months.
Mr D, an experienced property trader, purchased a property situated
in Wood Green, London at auction for his rental portfolio. First
Property lent him £220,000 on the purchase price of £340,000.
The loan was completed within 10 days, easily within the 21 day
completion stipulated by the auction company. The property needed
complete internal renovation. The loan was later refinanced.
Speculative
Deals
Mrs L is another experienced property dealing client of FPF who
has purchased numerous properties in Scotland. Her latest speculative
purchase was a farm in Kilmarock worth £370,000. First Property
Finance lent her £260,000, completing the loan within 4 days.
Our loan was refinanced within 4 months.
Capital Raising
Mr & Mrs J ran a successful business for many years but due
to cash flow pressures on their company they needed to raise £150,000
within days. They had substantial equity in their home and we were
able to complete a bridging loan to allow them the necessary cash
flow to carry on.
Mr & Mrs A ran a successful business for many years but due
to cash flow pressures on their company they needed to raise £350,000
within days. They had a home in Shipston - on - Stour, worth £1.6
million with a mortgage of £500,000. First Property Finance
was able to lend them £350,000 as a second charge.
Chain Fallen
Through
Mr S was in the middle of purchasing a property in Scotland and
days before he was set to exchange the buyer on their existing house
fell through. Mr S was completely distraught and thought that he
was going to lose the opportunity to buy his new house. Fortunately,
we were able to offer a loan of 70% of the purchase price of the
new property and allow Mr S to repay it through a combination of
the sale proceeds of the clients existing property and a new mortgage.
In the end, Mr S was a very happy new home-owner.
Buying Another
Home (Before Selling the Existing One)
Mr & Mrs T agreed to purchase a property abroad to retire. In
order to get a good price for the overseas property, Mr & Mrs
T had to act before selling their current home. We were able to
provide them with a six month loan on their existing home which
was unencumbered, enabling them to complete the purchase of their
dream home and sell their property once their retirement home was
ready for habitation.
Mrs B owned a house in Banbury, Oxon with a value of £675,000.
She had an existing mortgage of £260,000 but was substantially
in arrears and threatened with repossession. First Property Finance
plc lent Mrs B enough funds to pay off the existing lender and deducted
3 months interest from the loan. The loan was refinanced 4 months
later with another sub prime lender.
Mr &
Mrs G owned a freehold house with a value of approximately £650,000.
They had an existing mortgage on the property of about £350,000
but were substantially in arrears and threatened with repossession.
We were able to arrange a refinance of the existing loan within
seven days of being contacted by their broker and three months later,
the property was subsequently refinanced with another lender. Mr
& Mrs G avoided the huge loss of their home!
Mr F a
city trader who lost his job after 9/11 was in substantial arrears
on his beautiful home and was being threatened with imminent repossession by his current lender. Sufficient equity in his home was available
to lend on a 2nd charge basis to enable the arrears with the 1st
mortgagee to be cleared and give our borrower some breathing space.
We agreed to roll-up the interest so he didn't have to pay it for
the duration of the six month Loan. The house was immediately put
on the market and sold several months later, enabling our client
to realise the true value of his house and avoid repossession.
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