Further advance on a bridging loan to complete refurbishment works

What was the situation?

The client initially approached us with an existing bridging loan of £1.16mn on their property valued £3.25mn. They had taken this facility to carry out refurbishment works to their property, however they now required a further advance of £140k to complete the necessary works. Unfortunately, the client’s initial facility was painstakingly slow to progress, taking about 6-months for the legals to complete. As a result, they were very unhappy with the whole process and did not want to go through that again.

What was the issue?

In search of their further advance, the clients had weighed up their options. Despite their bad experience with the existing lender, they thought it would be easier to approach said lender to ask for the additional loan.

However, when considering the options available they had also contacted LDN Finance. We had a very good initial conversation, and I assured the clients that we would be able to assist. I also reassured them that the experience would be very different to the one they had with the original lender.

2 months later they came back to me and said that the lender – after initially saying yes – declined the further advance and would only consider providing the additional funds if they re-underwrote the application as though it was a new application. Understandably the client felt frustrated. Enough was enough and they wanted to move away from the lender – so we got to work.

What was the process?

We needed to source an alternative option with a lender who could act quickly and deliver completion with a tight deadline, due to their current product needing to be redeemed without heavy late repayment penalties.

What was the solution?

The application was submitted to a new lender at a rate of less than 0.9% per month and completion was almost a month later. This not only surpassed their service expectations, but was at a lower rate than they assumed would be possible also. When I congratulated the client on completion, they said “not often in business do people deliver exactly what they said would – but in this instance, LDN and the lender have done exactly that.”

Lending solutions with LDN Finance

Are you a property developer looking for a specialist finance loan? Perhaps a development or bridging loan?

At LDN Finance, our specialist team has extensive experience in securing short-term finance solutions suited to your circumstances – no matter the complexity. Working closely with our trusted network of private banks and specialist lenders, we’re sure to secure a bespoke arrangement for your project at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.