Initial circumstances: Client was extending and converting a single residential property into 2 semi-detached residential properties. As part of the transaction, the client was also raising £350,000 to buy out the existing business partner’s share in the property.
mtf solution: We provided a 1st charge bridging loan of £480,000 at 60% of the current open market value. With the remaining funds required for the works being released in stages against the increasing value of the asset. Interest was retained at 0.89% per month, over a 12-month term without exit fees or ERCs. We didn’t require any personal guarantees.
The benefits: The client was able to buy out his business partner, fund the remaining works to complete the conversion and sell the property against the higher value.