Bridging loan worth £10m arranged in less than a fortnight
Recently, a bridging loan for £10m was arranged in a mere 12 days, BridgingAndCommercial.co.uk reported in October 2017.
Although bridging loans are quick to arrange, it can take around four weeks for documents to be checked, a valuation report made, and legal work finalized. This 12-day turnaround demonstrates that if the borrower needs finance in a hurry, it can be done even in very high value loans.
The 12 days included the valuation and the legal work. The development funds were needed to convert a former Victorian warehouse into a loft-style studio development in the Hackney district London, which is now worth £20 million. Many large lenders would have hesitated because of the size of the loan, unlike a specialist lender.
Hackney is undergoing a significant regeneration and is becoming a hub for creative industries. It is a prime place for property investment too. Around 30 business have already rented space in the studio spaces, making it a creative hub. The businesses range from small startups to large global brand companies.
The borrower demonstrated his business acumen through his existing property portfolio, while had 100% tenant occupancy and good rental yields.
The eight-figure loan was for a short period, with the borrower expecting to replace it with a long-term mortgage within nine months.
This deal demonstrates that with a sound business plan, and business experience, property developers can arrange large bridging loans. Bridging finance brokers have a wide choice of lenders and can find the most suitable bridging loan deals for both small and large amounts.