Loan: Bridging Loan
Rate: 0.59% per month
Term: 12 months
'Bridging the gap' in a property chain is one of the most common uses of bridging finance. Providing fast and effective short-term finance via a bridging loan is a great way to secure a property. This case study demonstrates how we used our expertise to help a client that was at risk of losing their ideal retirement property.
The client a single retired female, was looking to sell her existing property to purchase a new property, that was in close proximity to her son. As a result of her personal circumstances, it was extremely important that she moved closer to her son as quickly as possible. The existing property was affected by mundic block and the new property she was looking to purchase was a Cornish unit.
The client had tried several other brokers and lenders, with no success. It had taken so long the property she wanted to buy had been remarketed.
Her existing property was affected by mundic block, the sale had fallen through twice as had numerous attempts to finance the transaction, she needed a bridge of £120,000 to allow her to buy the new one whilst the current one sold.
Because of the type of property of both the existing and new property are not traditionally mortgageable, the case would require a lender that would be comfortable lending to both types of properties. As time was of the essence it was also vital that the lender could move with speed.
The client was allocated one point of contact from our team, to ensure the process was as smooth as possible. We took the time to speak to the client directly, so that we could understand her personal circumstances and the urgency that was driving the need for a bridging loan. The next step for us was to discuss the structure with an underwriter, we relayed the personal circumstances to the lender and the underwriter agreed to secure against the properties which they wouldn’t normally take security over.
In this case, communication was key to a successful competition. We kept in close and regular contact with the client throughout, talking with her few times a day to calm her nerves and keep her updated. In addition, we helped the client through the legal process, supporting the client’s solicitor who had never worked with bridging finance before.
The expertise of our team and extensive panel of lenders meant that we were able to quickly identify a suitable lender and complete on the case in just 23 working days, meaning that our client was to secure the property close to her son without the delay of waiting for the sale of her existing property to complete.