We were recently approached by a developer looking to purchase an investment property which needed refurbishment. Her project focussed on a property in Croydon with an open market value of £450,000.
She was unable to get a mortgage as she needed to move quickly and the property was not habitable.
A condition of our bridging loans is that the borrower must meet with their solicitor face to face for the following reasons:
1. Their solicitor can certify copies of the client’s ID to verify the client’s identity
2. Their solicitor can go through the loan terms before the client signs the legal documents issued
However, it transpired that our client was unable to meet with her solicitor face to face as she had work commitments in New York.
In order for the client not to miss out on the investment opportunity, we flew our colleague over to New York to meet the client face to face and sign the documents in order to facilitate the funds.
Within three weeks, MTF provided a £292,000 bridging loan, at 65 percent loan to value, with no exit fees or early redemption penalty. The bridging loan from MTF meant our client had the funds to buy the property and the time needed to carry out the works, whilst hopefully increasing the value.
The client will look to exit the loan once the property has been refurbished, via either refinancing onto a longer term buy-to-let mortgage or selling the property.