Tag Archives: bridging loan

renovation loan

Specialist Renovation Goes Ahead with Bridging Loan

Holme Finance Bridging Solutions agrees a £240,000 finance deal for the luxury renovation of a residential timber framed and clad grade two listed barn.

The barn required a programme of specialist renovation and refurbishment works to bring the property up to scratch for a profitable re-sale. However, after approaching more customary finance channels the owners discovered they would not be able to secure a loan due to the non-traditional construction of the property.

Dan Yendall-Collings, senior underwriter at HFBS says: “We were sure we could help get this project started, the property was of sound build, nothing structurally wrong, but due to the amount of work and the specialist nature of the renovations required, we did have to have the property valued. In its pre-renovation state the property itself wasn’t suitable as security but we confirmed a deal after agreeing a comfort charge on the client’s home address instead.”

Provided with 12-month roll-up terms HFBS approved a non-regulated deal using the business exemption route based on the client’s profession as a professional builder and developer and 100% of funds being used for that purpose.

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

 

Eco home completed with bridging loan

ECO HOME COMPLETED WITH BRIDGING LOAN

Eco home completed with bridging loan from Holme Finance Bridging Solutions (HFBS) as it approves a thirty thousand pound development loan for the completion of the Eco home completed with bridging loanprefabricated home.

Approached by a successful property developer and experienced builder with a good track record, HFBS provided the loan to complete the internal fixings and decoration of a Scandinavian prefabricated four bedroomed detached home.

Dan Yendall-Collings, senior underwriter at HFBS says: “The client had purchased a plot of land for £60,000 as an investment. He paid cash for the land and bought a Scandinavian prefabricated house online for £30,000. The site went from bare land to a fully watertight building in just two days. However the internal completion stalled due to the client’s previous channel of development funding pulling out of the market. We were approached for a net loan of £30,000 required to complete the internal fixings and decoration.”

HFBS visited the site and carried out a full valuation. The site was valued at £150,000, with an end valuation of £375,000 upon completion of the development.

Dan continues: “Given the valuation we were happy to provide funding where other lenders were not. We had the deal done from application to transfer of funds within seven days.”

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

LOAN CLEARS TAX LIABILITY JUST IN TIME

Holme Finance Bridging Solutions (HFBS) loan clears tax liability just in time.

HFBS approves a thirty thousand pound loan to solve a short-term cash flow problem and urgently clear a tax liability.

The request to raise £30,000 as a second charge to clear a tax bill came at short notice when the sale of an investment property sale fell through leaving two weeks to agree terms and pay the outstanding tax bill.

The property sale would have comfortably cleared the tax liability in good time, instead the owner was left with a looming payment deadline and no way of raising the funds required in such a short space of time.

Dan Yendall-Collings, senior underwriter at HFBS says: “Whilst this was tight we were confident we could step in and help. Having met with the client at the security address and being able to see the sales particulars, we were confident that we would be lending well below 50% LTV which meant we could lend without the need for a full mortgage valuation.

However the first mortgagee on the security address had a flexible account with an all monies charge. This meant a written confirmation of their maximum liability under that charge was necessary; this took two days to materialize. Nevertheless we still completed within our client’s timeframe and the matter completed successfully in just eight days.”

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

Development goes ahead thanks to HFBS

DEVELOPMENT RECEIVES THE GO AHEAD FROM HFBS

Development goes ahead thanks to HFBS who help property developer achieve his vision for an executive residential new build and refurbishment project.

Development goes ahead thanks to HFBS

Unable to secure funds via traditional routes, such as high street mortgage providers, HFBS were approached to fund the project through to its completion with a bridging loan of one hundred and ninety five thousand pounds.

HFBS were satisfied the developer had a good track record successfully completing development projects and agreed terms over a 12 month period using a BTL property in central London as security.

David Broadbent, Director at HFBS says: “Having met with the client it was clear we would be able to agree a deal. We were happy to support the development knowing there would be a healthy profit in the sale, at which time we would receive full payment.”

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

Holiday home saved by HFBS

HOLIDAY HOME DEPOSIT SAVED

Holme Finance Bridging Solutions approve a two hundred and sixty thousand pound bridging loan to allow a professional client with a side line in property development to complete the purchase of a holiday home in Spain.

The client had originally hoped the proceeds required would have been released from the sale of one (of two) residential developments however timescales on these had overrun and both were short of completion.

Ian Broadbent, Director at HFBS says: “Our client owned a title which included a commercial premises occupied by himself  and two residential properties which were in the latter stages of completion  with a combined value as stood of £770,000. The client had the funds to complete the development, and with no mortgage outstanding and a clean credit status, we were happy to provide the loan to avoid the loss of the deposit placed on the holiday home.”

Provided with a facility at 0.95% month the loan will be repaid from the proceeds from the sale of one of the two residential units and strong business cash flow.

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

Are bridging customers likely to be affected by the PRA’s new BTL affordability checks, which could prevent borrowers exiting bridging loans due to the increased rental yield hurdles?

PRA’s new BTL affordability checks…

Are bridging customers likely to be affected by the PRA’s new BTL affordability checks, which could prevent borrowers exiting bridging loans due to the increased rental yield hurdles?

In order to consider the impact of the PRA’a intervention in the Buy to Let market we firstly have to identify the two distinctive borrower ‘types’ who may utilise bridging finance in respect of these purchases.

There are those who wish to ‘flip’ a property for a quick return and in these circumstances the properties are often sold to private purchasers wishing to occupy them and there is therefore no impact, however many borrowers utilise such finance as a ‘bridge’ to a longer term mortgage solution, how will they fair?

The answer is mixed. The more professional investor often adds significant value to a property before refinancing longer term, thus reducing the required LTV and in many cases the rental yield provides greater coverage meeting the higher requirements. In addition they often have significant ‘stand alone’ income which is likely to be considered by the specialist Buy to Let funder. A combination of these things may assist in mitigating the impact although it is impossible to get away from the fact that the days of highly leveraging a portfolio to expand rapidly is on the way out!

The less experienced (but no less entrepreneurial individual) may have neither the stand alone income nor the ability to add such value, this will no doubt be the harder affected group.

Once again ill thought out government policy has a disproportionate effect on those simply trying to add a little security to their future.

As bridging lenders we all want to retain profitable business models and good client relationships. No one wishes to see a spike in litigation and possessions therefore the application of the new rules have to be carefully considered when advancing that bridging loan.

As always change brings fresh considerations and those that can apply a little common sense will prevail. There are new challenges and likely some moderate effect on volume but as always the best lenders and the savviest borrowers will thrive.

RETIREMENT INCOME SAVED BY HFBS

RETIREMENT INCOME SAVED BY HFBS

Retirement income saved by HFBS  who turn around a £100 thousand pound loan within four working days.

The 80 year old investor found himself in a financial jam after the sale of his Buy to Let fell through at the last minute whilst committed to completing on the purchase of a commercial property run as a chip shop.

With only days left to complete HFBS were called on to provide the £100,000 shortfall and a lifeline desperately needed to ensure the deal went ahead securing the clients aims of generating additional retirement income.

Ian Broadbent, Director at HFBS says: “Our client had very limited options due to his grand age of 80 years. We required a valuation on this deal but we were able to arrange a quick drive-by valuation to satisfy our requirements. Also independent legal advice was necessary, but thankfully, all due diligence was satisfactory and we were able to pay-out within 4 working days.”

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month and one of lowest advances, starting from just £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

HFBS providing bridging support during 2017

HFBS Providing Bridging Support During 2017

Never ones to jump in too quickly we didn’t want to make comment on the New Year until the early signs were there (let’s face it, with the barmy events of last year anything was/is possible) but it now appears evident 2017 is odds on to be a good one.

Here at HFBS we are only too aware that pulling off that bet is down to the fantastic support we receive from you and we are certainly taking nothing for granted so rest assured we will continue to support you as best we can. Thank you for 2016.

Despite media scare mongering and the doom of Brexit, we didn’t suffer adversely in 2016 as our strategy of dealing with the very best introducers and relying on their expertise, together with the British spirit of ‘getting on with it’, paid off.

Looking forward towards what I hope will be a successful and prosperous 2017, we have returned to the office with our sleeves rolled up as we get started on a significant pipeline of work. If we’re talking about early indications for the bridging market, then it’s looking strong!

Both volume and quality are on the rise, it’s not easy, but if it was anybody could do it and we know that is not the case.

This year we plan more of the same but, hopefully, with a few less surprises (anyone for a snap election and Jeremy Corbyn to win?) Regardless we will continue to provide the sensible, steady certainty that you and your clients can rely on. No shocks here!

We are very much looking forward to building lasting business relationships and doing what we do best, providing a genuine service and lightening quick bridging loans.

I’d like to take this opportunity to wish you all a very successful and prosperous 2017.

Bridging deal is wrapped up in time

Bridging Deal Is Wrapped Up In Time

Seasoned property developer approaches Holme Finance Bridging Solutions (HFBS) for £75,000 against the purchase price of £130,000 to fund the purchase of a development property with bags of potential from auction.

Unable to fund the property through conventional mortgage routes the developer required a funding partner that could meet the strict deadlines required when buying at auction.

A valuation confirmed the property would not be mortgagable by conventional means in its current state but confirmed a ‘cash value’ and approximate costs involved to get the property to a habitable and mortgagable state. HFBS were satisfied the development could be completed successfully and advanced the funds required within 10 days.

Ian Broadbent, Director at HFBS says: “We had dealt with this developer before and knew that he not only had the knowledge, but the skill and experience to complete the task. We were able to liaise with the client’s solicitor and transfer the funds over for the purchase quickly to allow the property to be renovated and sold as soon as possible.”

HFBS offer the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. No solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules. Simpler, quicker, cheaper.

Holme Finance Bridging Solutions (HFBS) picked up the gauntlet and delivered for broker

Deal Turnaround Record For HFBS

Holme Finance Bridging Solutions (HFBS) picked up the gauntlet and delivered for broker Y3S Bridging on a £200,000 purchase case required within 72 hours to save their client facing considerable financial loss.

When a delay in a business transaction left their client nearing completion and committed to purchasing an investment property without the available funds they turned to HFBS.

Facing the prospect of significant financial penalties, losing a deposit, and the chance to purchase the property, Y3S approached HFBS on a Wednesday afternoon in the hope of securing a £200,000 loan before the weekend.

HFBS worked quickly and approved the £200,000 deal immediately, compiled the paperwork that day, completed the paperwork at the client’s home address on Thursday and were able to instruct the transfer of funds on Friday.

Andrew Gage, Director, at Y3S Bridging says: “Here at Y3S we always have a positive approach regardless of time constraints and tight deadlines. This case in particular was a challenge to say the least. But we knew if we had the right partner and the right attitude we’d be able to achieve it. This is not the first time we have used HFBS, so we knew we had the right partner on board. From start to finish, Ian and his team mirrored our own enthusiasm to get this deal done”.

Ian Broadbent, Director at HFBS says: “This deal was only possible due to the unique systems and processes we operate combined with a strong working relationship between ourselves and Y3S. I can only praise the staff on both sides for making this happen and achieving such a positive outcome for the client. Teamwork at it’s best!”

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £50,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.