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Our introducers client is in the process of purchasing a house in London with a current value of £800k. The client is planning to extend the property and convert it into two flats to sell on for a profit.
The property doesn’t have planning permission granted yet, but plan B (should the permissions not be granted), is to extend the property within permitted development rights, renovate to a high standard and sell on.
The team at Brightstar has agreed terms with one of its panel lenders to lend the client 73% of the purchase price, totalling £586k plus interest and fees. In addition, the client has a reserve pot of £138k agreed, which will cover the cost of obtaining planning permissions plus the conversion. Should planning permissions be declined, the borrower can simply draw-down what is needed for the extension and renovation.
This case study that not only demonstrates how we’ve been able to obtain a high LTV of c80% gross, it shows how bridging finance provides flexibility to obtain pre-agreed funds for obtaining planning permissions, and the subsequent works. In this instance, the lender has assessed both plan A and B, and is happy that both are viable.
Summary of case:
SUBJECT TO STATUS.
PRODUCT AND CRITERIA AVAILABILITY SUBJECT TO CHANGE OR WITHDRAWAL AT ANY TIME.
FOR INTERMEDIARIES ONLY.
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