£1.2m bridging loan for a mixed-use property in London

Client circumstances

A client approached us seeking a bridging loan to refinance an existing loan from a family member, which was used to develop a London property into a block of nine residential flats, with a commercial unit on the ground floor.

Having already sold six of the residential flats, they approached us for a loan over an 18-month term, to repay the sizable existing loan while the final three residential flats were marketed – something which was delayed by purchases falling through due to the COVID-19 pandemic.

Our solution

Upon learning that the client was an experienced landlord and property developer with an extensive portfolio, we had a lot of confidence in offering the bridging loan they required.

Knowing that development work had already been undertaken and the flats were finished to a good standard was an important consideration, particularly as they had sold multiple residential units in the development already. This gave us further confidence that their planned exit strategy of selling the remaining three residential units was highly achievable. Indeed, these three properties were already on the market during the process of the client seeking finance.

The benefits

A successful bridging loan from KSEYE enabled the client to repay the loan used to develop the property and gave them an additional period in which to sell the three remaining residential flats.

We assess every enquiry on its own merits. Our common-sense approach allows for flexibility in lending, and we pride ourselves on trying to make things work for potential clients. In this instance, the profile of the client and property made it easy to agree to their application.

Download our product guide to learn more about the range of bridging loans available from KSEYE.

Loan Amount

£1,267,500

Property Value

£1,950,000

LTV

65%

Rate

0.95% pm

Rates reflect products at the time the loan was completed