Client circumstances:
Our client needed £1.66m for a variety of projects: conducting a heavy refurb of one of their residential properties, a capital injection into their financial management business and fees for their children’s university education. It was imperative that funds were secured quickly for these three purposes, which eliminated the possibility of approaching a high street lender. This is when their broker contacted our regulated team.
MT Finance solution:
Understanding the need to move extremely quickly, we booked a valuation of the security property – which was the client’s current main residence – as soon as the application was approved. The valuation report and first legal replies were received within five working days and after another eight, we issued a first charge regulated bridging loan of £1.66m at 35% loan to value. The term was set at 12 months and the client won’t face any exit fees or ERCs if they can repay their bridging loan earlier.
The benefits:
There are multiple benefits to this bridging loan. Firstly, the client will be able to complete a heavy refurb of one of their residential properties, which they are planning to move into once the works are complete. They will also be able to provide substantial investment into their financial management company which will help it grow while also ensuring all fees for their children’s university education are paid for.
Once the heavy refurb is complete, the client will be able to move into that property and sell their current residence, which has acted as security. They will initially look to sell the security property privately but if they don’t receive an acceptable offer with three months, it will be transferred to the open market. A high street estate agent has already provided a marketing recommendation report in the event of this eventuality. The 12-month term will give the client enough plenty of time to complete the refurb and sell the security property.