Case Study – Bridging

Client circumstances The loan was brought to us by a repeat borrower, who we knowas an experienced investor with a strong asset and liability portfolio. They needed urgent funding to purchase a commercial property in Sheffield. The property was a large, detached, single-storey retail unit, currently occupied by a well-known high-street chain.The borrower needed £682,500 to purchase the property, and with a tight timeframe to complete the purchase, a commercial bridging loan was the only available option. The client intended to re-gear the existing lease with the current tenant, increasing it substantially, which they believed would increase the property value by approximately 40%, and then sell. Our solution Due to the time-sensitive nature of this case, with funds urgently required for the transaction, we worked diligently to expedite the process, with underwriting and legal checks taking place as valuations were completed and solicitors were engaged by both KSEYE and the borrower.Their clear exit plan meant we only needed to consider the amount of time the property may take to sell and whether their proposed loan terms were appropriate, rather than having to determine how easy it would be to refinance with another lender.Throughout this process, our strong relationship with the client, awareness of their established property portfolio, and knowledge of their highly successful property investment, management, and services business, helped the loan process to be completed in good time to meet their urgent deadline. Loan Amount £682,500 Property Value £1,050,000 LTV 65% Rate 1% pm Time to completion 16 days Rates reflect products at the time the loan was completed

Client circumstances The loan was introduced to us by one of our trusted broker firms on behalf of a repeat client who required urgent funds to complete an auction purchase of a 6-bed residential house located in Bromley.The house was in severely uninhabitable conditions, requiring light repairs and refurbishment before it could be tenanted. The scope of works included, but was not limited to; window repairs, lighting upgrades, plumping, plastering and painting. These refurbishments were not only essential to meet habitable standards for letting but also important for improving the EPC rating. Our solution Given the time-sensitive nature of this case, where funds were needed urgently to complete the purchase, it was vital that we acted quickly and efficiently. With our in-house legal team, experienced underwriter, and dedicated case managers working together on every deal, our team were able to identify and overcome any potential issues from the outset, ensuring we see the deal through to completion.Our valuation partners raised comments indicating that the property’s estimated value, in its current state, was ambitious. However, they also highlighted that if proposed repairs and refurbishments take place, the estimated value would be reflective of the property at the completion of the works. With the required works being necessary to improve the EPC rating to a level where the property could be let, our valuation partners were confident that once refurbishments were complete the property would be tenanted within the loan term.The client has a clear exit strategy, which involves refinancing the residential bridging loan into a longer-term loan with another lender. This provided us with reassurance that the loan would be paid in a timely manner, and thus, we were comfortable approving their application. Loan Amount £1,087,500 Property Value £1,600,000 LTV 68% Rate 1.08% pm Time to completion 27 days Rates reflect products at the time the loan was completed

Client circumstances We were contacted by clients seeking to acquire a commercial property in Harrow and required a bridging loan of £312,000 to achieve this.As well as being experienced portfolio landlords, the clients had operated a business from the commercial property for several years, including the upper floor used for storage. With the property becoming available for purchase, the clients were immediately interested in acquiring it to maintain it as the ongoing location for their business.With the option to convert the upper floor to a separate residential property available to be let out, the clients would have some flexibility on their use of the property depending on their business needs. Our solution As we were familiar with the clients, we already had an awareness of their experience and existing portfolio, making the information-gathering process a little easier. After learning of any changes in the circumstances, it was important to consider the property they wanted to acquire.Given they had been renting the property for several years for commercial purposes, they had a pre-existing landlord & tenant relationship with the party selling the property. With this in mind, the purchase could not be considered an arm’s length transaction. In this circumstance, it is vital to obtain an accurate valuation before proceeding and to ask for more information on the agreed price if necessary.After assessing the property, our valuation partners determined that the price agreed by the seller and the client was the fair market price for the property. They did not highlight any other areas of concern.With the clients’ plan to exit our loan through refinancing onto a longer-term commercial loan seen as appropriate, we were happy to approve their application for bridging finance. The benefits The clients completed the purchase of their desired commercial property after successfully obtaining bridging finance from KSEYE. This gave them an additional level of reassurance over the ongoing location of their business and reduced their regular outgoings due to no longer renting the property.While commercial bridging loans are more specialist than other forms of bridging finance, and they carry a slightly higher level of risk to lenders, we assess each application on its own merits. When considering an application for a loan where the client has an existing property portfolio and well-established business, some of that risk is mitigated.Learn more about the rates and business types we can provide finance for on our dedicated Commercial Bridging Loans page. Loan Amount £312,000 Property Value £480,000 LTV 65% Rate 0.95% pm Rates reflect products at the time the loan was completed

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

Client circumstances A client approached us directly seeking a bridging loan over a 12-month term to acquire a mixed-use property in Uxbridge that they had won at auction. As can be typical with auction properties, they required a bridging loan due to the limited time to complete the purchase, with traditional mortgage options not available in the required timeframe.The mixed-use property included a retail unit on the ground floor and a residential flat on the first floor, with the residential flat requiring refurbishment. Our solution Knowing the tight timescale and the complexities that mixed-use properties can present, a prompt yet comprehensive valuation is an important step. Our expert valuation partners provided this as expected, confirming the status of both the commercial and residential units. Their report included an assessment of the refurbishment works needed for the residential flat, which were in line with information provided by the client and their planned renovation budget.The client’s proposed plan to exit via refinancing with a more traditional lender was something we saw as appropriate.The remaining questions we had around the property related to various forms of certification, which the client could not obtain or provide until they had acquired the property itself. To address this, the client agreed that they would obtain these promptly following the purchase of the property. The benefits Receiving finance from KSEYE enabled the client to finalise the purchase of the mixed-use property they had won at auction before the imposed deadline. Following this, they began the refurbishment work as required and started obtaining the necessary certification.Over nine years of lending experience has given us an awareness of the complications that may arise in acquiring finance for both mixed-use and auction properties. Our flexible, common-sense approach to lending considers various circumstances in reaching decisions on providing bridging finance.Contact our expert team today to discuss any complex property acquisitions that require bridging finance. Loan Amount £351,000 Property Value £540,000 LTV 65% Rate 0.85% pm Rates reflect products at the time the loan was completed

Client circumstances A broker approached us on behalf of a client seeking a bridging loan of over £3m for 18 residential properties from the same development in Manchester.The properties comprised four-bedroom townhouses split over three blocks, completed as the first phase of an ongoing development. The client was seeking bridging finance as the current owner was looking for a relatively quick sale to avoid fees relating to their initial acquisition of the properties. The client was concerned that the opportunity might pass if they sought finance by a more traditional route.The client wanted to acquire the properties as a buy-to-let investment, so their reason for taking advantage of the opportunity was apparent. Our solution While there can be several reasons that a client may apply for bridging finance, it is not uncommon that it is because it can enable a property to be acquired faster. Although this is often because the client has a deadline by which they need finance, such as an auction purchase, in this instance, we understood it was to ensure the client could take advantage of a time-sensitive investment opportunity.Our valuation partners confirmed the value of the properties, the standard to which they were finished, and the expected combined rental income. They also shared concerns that future purchasers may avoid the properties until the completion of the development. However, as the client planned to let the properties rather than sell them, this was not an issue.The client’s plan to exit our 12-month bridging loan was to refinance onto a traditional buy-to-let mortgage, and after checking that they would be able to obtain this, we were happy to agree to the loan. The benefits After receiving finance from KSEYE, the client was delighted to acquire the properties, adding a valuable asset to their investment portfolio.Our fast and flexible approach to lending was a key factor in the broker approaching us to enable their client to take advantage of this opportunity, knowing there was a time-sensitive element to the acquisition.With bridging loans between £150,000 and £50m, KSEYE can assist property investors with a wide range of acquisitions across different property types. Download our Bridging product guide to learn more. Loan Amount £3,262,500 Property Value £4,350,000 LTV 75% Rate 0.75% pm Rates reflect products at the time the loan was completed

Client circumstances We were approached by a broker after a client of theirs won a property at auction. As can be typical of properties won at auction, their client required bridging finance as a longer-term mortgage was unavailable due to the need for development work to be undertaken.While this particular property was bought as a three-storey commercial property, the client had permitted development rights to convert this into six residential flats.In this instance, the client was seeking the bridging loan to pay for the property itself, with funds and plans already in place to complete the necessary development works. Our solution We were approached by a broker after a client of theirs won a property at auction. As can be typical of properties won at auction, their client required bridging finance as a longer-term mortgage was unavailable due to the need for development work to be undertaken.While this particular property was bought as a three-storey commercial property, the client had permitted development rights to convert this into six residential flats.In this instance, the client was seeking the bridging loan to pay for the property itself, with funds and plans already in place to complete the necessary development works. The benefits After successfully obtaining finance from KSEYE, the client was able to complete the auction purchase. Following the development work, due to be completed in Spring 2022, the properties will then be sold, exiting their bridging loan and setting themselves up for future property investment.The flexible approach to lending that KSEYE takes benefitted the client, as the purchase of a commercial property but permission and intention to convert it to residential properties was something that a rigid approach would not have worked for.Contact us today to discover how our fast and flexible approach to learning can benefit you or your client’s property finance needs. Loan Amount £339,500 Property Value £485,000 LTV 75% Rate 0.8% pm Rates reflect products at the time the loan was completed