Bridging Finance Solutions has finalised a £1.174million bridging finance deal with a client keen to consolidate debt ahead of a refinancing agreement on completion of a property.
The client approached BFS to discuss a loan that would cover repayment of a number of unpaid debts in excess of £1million.
Using the property in leafy Blundellsands, Merseyside, as security, the home was valued at £2,380,000, however, it wasn’t yet completed. Upon further inspection, the professional team confirmed the costs to complete were £220,000, whilst the client believed he would complete with £110,00 which he had in cash. In order to complete the deal, BFS provided a loan of £1,174,000 and built in a net amount of £110,000 to be drawn down in arrears upon QS sign off.
The clients exit strategy was agreed at point of sale, when he will downsize, and the loan will be repaid in full.
Adam Wolstenholme of BFS commented: “This was a regulated bridge using the clients main residential house as security. In order to determine a value and cost for completion, there was significant work involving liaison with the clients builder, architect and structural engineer.
“Ultimately, the loan was agreed, giving the client the ability to repay his debt and complete work on the property, finding a viable long term financial solution for a fairly complex situation.”
