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SPECIALIST LENDING CASE STUDIES - APRIL 2020

Bridging & development finance, commercial mortgages & business cashflow solutions

Here a Brightstar we continue to work together with our valued partners are would like to share a few recent examples of the solutions we have been able to proivde for their clients:

Bridging & Development Finance:

  • 70% 1st charge bridge (FCA regulated) – the client had planning for a new-build house to the side of his current terraced property. We were able to arrange a 1st charge bridging loan of £280,000 at 70% LTV, a rate of 0.99%pm over a 12-month term. The facility was used to re-pay the existing mortgage and raise the additional capital required to fund 100% of the build costs for the new property with the funds released through stage payments.
  • 65% Development Exit – we have completed the refinance of a development loan for a large property developer who recently finished a development of 26 leasehold apartments in Kent but had not been able to sell them to repay the facility used to complete build. The current lender requested funds back ASAP. A £3.5m dev-exit bridging loan was arranged at 65% LTV and a rate of 0.9% pm. This was set up for the client over a 12-month term with no exit fees, providing the time to sell the properties and repay the debt.
  • Re-bridge (FCA regulated) – a client with an existing bridging loan approached us as he had come to the end of the term and needed to repay his current lender. The client’s original intention was to gain planning consent to knock-down and rebuild the property. However, due to Covid-19, the planning decision had been delayed and the project had been unable to start. Advice was provided to the client on a regulated bridging loan of £500,000 (net loan), over a 12 month term with a rate of 0.68% p/m to refinance the existing £330,000 debt and raise a further £170,000 to allow the client to repay expensive credit card debt, school fees and also pay for the professional planning fees.

 

Commercial Mortgages & Business Cash-Flow Solutions:

  • 70% LTV Semi Commercial purchase. Clients were looking to purchase 3 flats above commercial premises. The flats had existing tenants with the rental income from them being enough to service the total borrowing facility required to complete the purchase of all 3 flats and the commercial unit. This allowed the lender to offer a low fixed rate of just 4.95%.
  • Purchase of Commercial Assets consisting of a ground floor shop and offices above. We were able to obtain a 65% LTV, Interest Only facility at 3.85% over a 20-year term.
  • Re-finance of a 13 room Holiday Let. The clients needed to refinance due to their current commercial mortgage deal coming to an end. A rate of 4.69% was secured at 60% LTV on an Interest Only basis over a 10-year term.

 

*Please be aware! Interest rates and loan to values may vary dependant on case specifics.

 

FOR INTERMEDIARIES ONLY – NOT INTENDED FOR PUBLIC OR CONSUMER USE