Our clients were in the process of purchasing a semi-commercial property that they intended to convert back to its residential state and then reside in. Their initial strategy to fund the purchase was via the sale of their respective assets, however, due to one of the assets having a restriction registered on the title, their purchase transaction got delayed.
With neither the restriction removal nor the sale of the two assets progressing quickly, they were at risk of the chain collapsing and losing their dream home. Running out of time, their broker got in touch with an urgent request to consider the matter.
MT Finance solution:
As the property they were purchasing had previously been residential, we did not envisage any issues with it reverting to its original usage. So, to raise enough funds to remove the restriction and purchase the semi-commercial property, we proposed a cross-charge regulated bridging loan against all three assets. This enabled us to lend a total of £2.86million at a combined loan-to-value of 64%. The term was set at 12 months.
By agreeing to issue a cross-charge regulated bridging loan, the clients were able to remove the restriction from their asset and proceed with the purchase of the semi-commercial property. The 12-month term will give the clients enough time to sell the two security properties and if this happens before the end of their 12-month term, they won’t face any early repayment charges or exit fees.
Find out more:
If you’d like to find out more about any of our regulated bridging loans or have a specific case you’d like to discuss then we’d love to hear from you. Simply drop us a line here and a member of our team will be in touch shortly.