£5.465M Bridging Loan To Fund 100% of Purchase price

Case Study

£5.465M Bridging Loan To Fund 100% of Purchase price for mixed use site In Dalston
Advisor – Laura Toke
LTV – 55%
Rate – 0.625% P/m
Term – 12 Months
Exit Fees/ ERCS – non
SPF Commission – £37,000
Lender – United Trust Bank

Scenario
Our client an experienced investor and developer with a portfolio in east London, approached SPF for a net loan of £5M to purchase a mixed use development in Dalston and raise funds for the development of the site. They required 100% of purchase price, and 100% of development costs, using a building with planning for a hotel as additional security.

Challenges
There were unresolved planning issues with the hotel development which formed part of our security and it was held in a complex BVI structure with a Hong Kong Nominee. However, working closely with our trusted lender partners, we were able to liaise with all parties effectively to amend the structure making it compliant for the bank and providing additional security to mitigate the issues with the planning.

Outcome
We were able to obtain the client 100% of Purchase price for the site in Dalston, as well as funds for the development at a highly competitive rate, utilizing equity in the clients portfolio. The client had been quoted 0.9% by another broker, so this saved him a significant amount of interest over the 12 month term.