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£3.2m residential bridging loan for 18 Manchester properties
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