Property finance specialists, Property Loans (UK) Ltd, were faced with a time-critical challenge by one of their long-standing development clients urgently needing a £500,000 development finance loan completing in under one week. With the support of Bridging Finance Solutions, the client secured the funds in six days, completing the deal.
The Liverpool based builder had completed the construction of a development of six detached homes, three of which had been sold whilst a fourth was under sale and the final two still under sale negotiation. Ready to move onto their next development, the client had had already exchanged the contract on a piece of land in Formby, Merseyside. With under a week to the completion date, the builder had to have funds in place for his solicitors. Failure to complete the contract on time could mean the vendors retaining the £45,000 deposit and withdrawing the contract for sale to the builder, with the possibility of an additional financial penalty.
Property Loans (UK) Ltd is a specialist broker in arranging both development funding and bridging finance for their clients and have enjoyed a long and close relationship with Bridging Finance Solutions for numerous loans over many years. Having contacted BFS on the 14 December 2017, Bridging Finance Solutions immediately kick started the process instructing their valuer and issuing relevant legal packs whilst instructing their own solicitor.
The process sped ahead with all parties including BFS’s solicitors Bermans and the builder’s solicitor, Whitfields working together rapidly and incredibly efficiently to meet the pending deadline six days ahead. Through the combined efforts of all parties, the loan amount was confirmed and Whitfields received the loan monies some six days after the application was submitted enabling them to complete the land purchase for the builder.
Barry Rowne, Director of Property Loans (UK) Ltd commented: “This was undoubtedly a challenging case due to the extremely tight timescale and the time of year. This was a collaborative effort and was only successful due to the commitment of all parties. To achieve completion at this level of borrowing in six days is a huge achievement and I’m pleased to say that my client was able to secure the land.”
He added: “I continue to use bridging for a large percentage of my cases as it is often the most viable way of making sure a deal is secured for our numerous property clients. Having worked with Steve Barber and his team at BFS for many years I can wholeheartedly recommend them as a professional and committed organisation who will always go that extra mile to support their brokers and their borrowers. This case serves to strongly illustrate and highlight this assertion.”