£750k Bridging finance on property in Watford
Our customer was in a difficult situation after a bankruptcy order a few years ago in which they owed a substantial amount.
The redemption period for a £600k facility was nearing, and the interest rate on this loan would increase significantly after that. The client's financial situation had deteriorated over the past 18 months, and was considering selling their property to settle debt and free up the remaining equity to relocate and start afresh.
The issue was that the client was in the middle of a significant renovation that needed to be completed before the property could be put on the market. The client's finances didn't allow them to complete the refurb without additional funding, and their status meant that they wouldn't likely qualify for other lending options.
Furthermore, when the deadline for repaying the £600k drew nearer, time was of the essence to avoid costs spiralling.
The Solution
The Loan-to-Value worked on this property and we were able to lend £750k to pay off the debt and fund the additional work required to complete and sell the home. All in all we completed in just under 7 weeks.
As Gary Poulton explains "Bad credit makes many lenders run a mile and they're not always interested in hearing the story behind the borrower's circumstance. This is where we're very different. Whilst we lend against properties we also make a point of remembering that we're lending to people. Providing we truly understand, and believe, how bad or adverse credit occurred then we're able to make an informed call on whether we want to lend to the person. That's not always to say we can lend in every circumstance, but by would-be clients being 100% transparent we can at least identify whether the deal is workable"
We were completely satisfied with primary loan's objective, the property's relatively extensive repairs and the LTV in the deal we were able to lend the right amount to get this client out of a very tricky situation.