AREA: Leeds
AMOUNT RAISED: £5.2 million
PRODUCT USED: Bridging loan
Client Scenario
The client, a well-established family-run limited company with a diverse property portfolio, required time-sensitive funding.
They needed to secure £5.2 million to acquire a prime commercial property in Leeds city centre. The property, a multi-use building with retail units on the ground floor and office spaces above, presented an excellent investment opportunity.
However, the client faced a significant challenge.
They were in the process of selling a large industrial estate in the Midlands, which was taking longer than anticipated due to complex negotiations. This delay created a cash flow issue, potentially jeopardising the Leeds property acquisition.
Funding Solution
The situation called for a swift and creative approach. Through an extensive network of specialist lenders, a suitable bridging loan solution was identified for the client.
After careful consideration, a lender was found who could provide a 24-month bridging loan at competitive terms:
- Loan amount: £5,200,000
- Loan-to-Value (LTV): 65%
- Interest rate: 0.75% per month
- Term: 24 months
The loan was secured against the Leeds property being purchased, with a second charge on the industrial estate in the Midlands as additional security. This structure allowed for a higher LTV and more favourable interest rate.
The complexities of the case, including the intricate ownership structure of the client’s company and the need for swift completion to secure the Leeds property, required careful oversight.
Final Outcome
The bridging loan was successfully secured for the client within 21 days. This efficient turnaround allowed the client to complete the purchase of the Leeds property on schedule.
The 24-month term provided ample time for the client to finalise the sale of their industrial estate, after which they plan to refinance the bridging loan with a long-term commercial mortgage.
This case study demonstrates how expert financial brokerage can source and secure complex bridging finance solutions. By understanding the unique circumstances of each case and leveraging industry expertise, challenging scenarios can be overcome to deliver positive outcomes.
Key factors in the success of this case included:
- Quick assessment of the client’s needs and identification of suitable lending options
- Negotiation of favourable terms with the chosen lender
- Efficient management of the application process to meet tight deadlines
- Ongoing support and communication throughout the transaction
This case exemplifies how bespoke financial solutions can be structured to meet specific client needs, even in complex scenarios. It showcases the value of specialist knowledge in the competitive world of commercial property finance.
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