2nd charge for restaurant purchase, W8
Client required funds to purchase a French restaurant in Kensington, which he intended to make light refurbishments to before opening. He was waiting on the sale of one of his overseas investment properties to fund the transaction but the sale process was taking a little longer than expected. As the funds were only required until the investment property was sold, he needed a short-term fix in order to capitalise on the business opportunity.
MT Finance solution:
In just over 3 weeks, we provided a £214,000 second charge bridging loan on the client’s main residence, at 65% LTV of the £440,000 open market value. Interest was retained at 0.89% over 6 months.
The client was able to purchase the restaurant and start the refurbishments in line with his scheduled open date. Once his investment property is sold, he can repay the bridging loan. Should he choose to do this early, he can do so without incurring any fees or penalties.