Case Study – Bridging

£1.2m bridging loan for a mixed-use pro...
Aug 11, 2022
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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
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Bridging loan provided for mixed-use pro...
Aug 11, 2022
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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
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£3.2m residential bridging loan for 18 ...
Aug 11, 2022
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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
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Auction property acquired through bridgi...
Aug 11, 2022
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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
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