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Bridging loan completes purchase

Bridging Loan Completes Purchase

Holme Finance Bridging Solutions provides property developer with a first charge bridging loan for 68 thousand pounds.

Bridging loan completes purchase

The loan was required to purchase a three-bed semi detached house that had been converted into two flats. In a derelict state it was ripe as a development project to bring it back to a habitable state and profitable investment.

Contracts were exchanged with a delayed completion date set at six months allowing the renovation to begin in earnest to make the property habitable and therefore mortgageble.

Dan Yendall-Collings, senior underwriter at Holme Finance Bridging Solutions says: “In theory the delayed completion date would have enabled complete renovation works at which time upon completion a traditional mortgage route could be explored. However with several unexpected problems and delays the six-month period passed quickly. With the properties not quite completed, and the completion date looming, the developer’s broker approached us for a bridging loan.

Just days away from not being able to meet his commitment, and potentially giving the vender back two fully renovated flats for nothing, HFBS provided a £68,000 bridging loan against a valuation of £137,500 within seven days enabling the developer to complete on the purchase as agreed and organise refinance once he had secured tenants for both units.

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.

Troublesome Investment Property Receives Bridging Loan Boost

Bridging loan approved with confidence after mortgage lender walks away from mortgage in principle on auction bought property.

Moving ahead with no reason to doubt securing a Buy to Let mortgage offer the client bought at auction for 180 thousand pounds, leaving 28 days to complete the deal and pay the final balance.

Investment property receives confidence boost from Holme Finance Bridging Solutions.
Investment property receives bridging loan boost from Holme Finance Bridging Solutions.

With one week left to complete the mortgage application was rejected based on evidence of Japanese knotweed to the rear of the property. The mortgage lender would not offer the mortgage until this invasive plant had been professionally eradicated and certified as being clear.

With a completion certificate in hand HFBS – bridging loan specialists – were approached to help close the deal with a £123,000 advance – all within the tight deadline of a working week.

Ian Broadbent, director at Holme Finance Bridging Solutions says: “Facing losing the deposit as well as the whole deal our client was taking a huge risk from the start hoping the mortgage would come through in the allotted 28 days. Of course the unnoticed evidence of Japanese Knotweed would have always been a deal breaker without the necessary works and insurance to ensure the weed would not reappear.”

“However we did advance the higher LTV we would normally consider due to the fact the relevant insurance was in place and plans for completed refurbishment to let would take just a few short weeks. We had the confidence to fund and were happy to save the deal within a very tight deadline.”

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.