Securing finance for a client without building control

What was the situation?

I was approached by my clients – experienced property developers – whose current bridging loan was coming to the end of its agreed term.

The property was a house that my client had converted into flats. However, the flats did not yet have Build Control sign off. Build Controls are the parameters in place to ensure is new-builds and developments meet certain criteria’s and safety regulations, and is a requirement to lend for most property finance lenders.

The existing lender was not able to extend the loan. Therefore the clients were looking for a new facility to re-bridge in a short time scale in order to avoid default interest. They wanted to borrow £700,000 on an estimated value of just over £1,200,000.

What was the issue?

Due to the Build Control delays, the project couldn’t be signed off before the existing bridge expired. Without these Controls in place the clients were also unable to convert to a traditional mortgage until they were signed off. They had to use a bridge to enable them to repay the existing facility and to provide them the required time to achieve building control sign off.

What was the process?

Using extensive knowledge of the bridging market, I discussed the case with an handful of select lenders who I knew would take a view on the lack of building control. Once we had discussed the application, I selected a lender who provided competitive terms whilst servicing the requirements of the clients, and who were able to meet the deadline of the current facility expiring.

Ensuring I was on hand to answer any client queries, I acting as the middle man between the existing and new lender, the QS and solicitors to reduce unforeseen delays that were under our control.

What was the solution?

Working with all parties involved, I secured new funding for the clients to avoid the previous facility from defaulting on great terms.

I secured a 12 month term and a competitive rate. The client avoided defaulting on the existing bridge, and this enabled them time to finalise the building control sign off before looking to refinance onto a traditional mortgage.

Lending solutions with LDN Finance

Are you exploring your options of a bridging loan? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.