B&C Distributor is proud to bring you the best of bridging for the week, straight from the offices of some of the top brokerages.
This week, we have details of a number of case studies from packagers Only Bridging and The Funding Operation...
John Ferguson, Sales Director at Only Bridging informed us of three case studies of deals they have completed…
Our client wanted to purchase a HMO property, in Stoke-on-Trent that had come through auction. He needed to secure the funds quickly. We were able to raise the funds against the HMO property at 60 per cent of the purchase price; three Buy to Lets and one commercial unit at 60 per cent of the for sale figure. The client was able to secure the funds needed and make his purchase.
Our client in East Sussex had inherited an unencumbered property worth £800,000. She intended to live in it but needed to pay off her two brothers who had a stake in it. She required £540,000, but needed the funds quickly, as her younger brother was very ill and needed a lifesaving operation to be carried out in Houston Texas. They needed the funds within ten days, which was plenty of time for us to complete.
Our client in the Cotswolds, wanted to develop a piece of land and build nine houses with a GDV of £4.5 million. We were able to secure 50 per cent of the land value, to help with the purchase and then up to 80 per cent of the build costs. The build costs have been released in tranches and by the end of the 12 months the development will be self-sufficient. The client has already built and sold two of the properties.
Terry Markham, Managing Director of The Funding Operation (TFO) told B&C Distributor how they successfully completed a relatively normal bridging case for one of its introducers’ clients…
The residential property was valued at £1.1 million and we raised a gross loan of £710,000. The client, a successful businessman, was living in Dubai and had only moved there 12 months previously. There was nothing spectacular here, a pretty normal run of the mill case for our company.
However, the expected exit was via the sale of one of his companies. With two days left of the original term we received a call, with a very worried client explaining that whilst the sale of his company was still going through, it was not going to complete in time to exit the loan. The existing lender was quoting figures that were practically double what he had been paying to extend the loan, but there was not enough equity in the property to take care of all interest and costs. Therefore, an urgent solution was required.
Within 30 minutes we called the customer back with our response on how we could help. One hour later the customer was sat with Matt Rogers in the Watford offices of Omni Capital, with proof of identity and residence in hand. Matt completed all the paperwork and instructed De Villiers to carry out a valuation of the property. Within 24 hours of being instructed De Villiers had not only carried out their inspection but had a hard copy of the report sat on the lenders desk!
The case was now moving at a very healthy pace, with solicitors already speaking with each to effect an urgent completion. All in all, TFO & Omni Capital successfully completed the case within five days of receiving the first phone call (this also included a weekend!). Needless to say we had a very happy customer, because you need to remember that we had to re-bridge an existing bridge! However, none of this would have been achieved without the professionalism of both Omni Capital and De Villiers.
It goes to show, that when an experienced packager works with a very professional lender and willing valuer the impossible becomes a reality.