Bridging Finance • Refinancing
Urgent Refinancing Of A £2.35m Investment Property In Brockley
Achieving a high-leverage, serviced facility on a large single asset is not always straightforward. Thanks to the efforts of our team and a strong income from the client, we were able to arrange bridging finance to redeem an existing facility which was over term, giving the client time to arrange a long-term solution.
Loan Size: £1,837,000 (78% LTV)
Location: Brockley Conservation Area, London
Loan Type(s): Serviced Bridge
Security Type: A Single Large Residential Unit, CMV £2,350,000
Interest Type: First three months retained, with subsequent interest serviced monthly
About the Deal
We were approached by a client requiring an urgent refinance of an existing facility which was over term. The property had been purchased as an investment and potential project, but delays to planning and the client setting up a new business meant the existing facility had gone past the end of its term, and required redemption.
The Challenge
Whilst the property being a large single unit in a conservation area would not have presented a challenge alone, due to the high leverage of the existing finance, the client did not have the necessary funds to make up the shortfall on a fully-retained basis. The client also had a number of credit markers on their file. We determined that the best solution to raising these funds would be to part-service the facility, as the client had recently seen an increase in their income from their new business venture.
The Result
By retaining the first three months of interest, we raised enough funds to redeem the previous lender. With a gross loan of £1,837,000 at 78% gross LTV, the client was able to redeem an over term facility that they otherwise couldn’t have, with minimal cash input, giving additional time to arrange a longer-term solution.