What was the situation?
I was recently approached by an experienced London property developer who needed to repay the current bridging loan held over his most recent project – a part-completed development in East London. In order to get the job done and finish the project, my client needed to secure a new bridging loan at a value of £820,000.
What was the issue?
The challenge, in this case, was that my client needed a lender who could work with the previous valuation report and just accept a reinspection, as this would save both time and money during the process.
What was the process?
When researching the perfect solution for my client, I contacted lenders within our trusted bridging and development network that I knew specialised in this form of lending, before then providing them with all the information they would require to make a quick decision.
Testament to my close working relationship with my chosen lender, I spoke directly to the owners about my client’s development portfolio and ambitions and they were resultantly very keen to support him on this project and further developments in the future. Once the lender issued their terms, I managed to negotiate reduced legal fees and also made amendments to the legal documents in favour of my client to ensure the best outcome for his circumstances.
What was the solution?
Working closely with the new lender, I secured the funds needed to repay the existing lender in full with a new 48% loan to value (LTV) bridging loan at a rate of 0.65%. This successfully gave my client an additional 12 months to secure the right tenants and convert to a term loan.
The client was thrilled with the outcome – he had previously been under pressure to repay the existing debt and by completing this loan he was able to repay them in full before the product could go into default and incur higher interest and additional fees.
My client was pleased we had taken his requirements on board and dealt with all requests quickly and efficiently without him ever having to chase us for any answers. We are now working on the exit to a term lender and due to our extensive network, we have been able to provide multiple terms from several lenders for my client to review.
Lending solutions with LDN Finance
Are you looking to secure a bridging loan in order to finish a part-completed development?
At LDN Finance, our expert team of brokers have a wealth of experience in securing short-term finance, working closely with our trusted network of private banks and specialist lenders to arrange bespoke funding solutions to suit your circumstances at competitive, market-leading rates.
Get in touch with us to organise an initial consultation.