June 12th, 2019.
Deal of the Month June 2019: £2.5m Second Charge Bridging Loan Secured in 3 Working Days
Every month, we like to shine a light on one particular stand-out deal, whether because it is worth a lot, it was an unusual deal, or simply because we secured funding really quickly. The latter was the case for June 2019’s ‘deal of the month’.
About the Deal
The client, an experienced property developer who wishes to remain anonymous, had a large site with planning permission for multiple homes. An existing lender had taken a charge out on the land to fund the project up to that point, but further finance was needed to complete the job to the developer’s high-quality standards.
This finance was secured, but the lender pulled out right at the last minute before funding the next stage. Loan documents had already been issued, meaning the developer was blindsided.
Enter our brokers. We had worked with the developer on complex projects a number of times in the past and were confident in finding the required £2.5m in funding, despite complexities of a very short turnaround time and the valuation only covering the first charge amount from the existing lender.
We needed to find a new lender that would take a second charge behind the existing debt and would look at the overall merit of the land value and the final project, rather than the previous valuation. Even with these complications, the team was able to find a lender – Bushell Investment Group (BIG).
From the point of enquiry, we completed the deal within three working days – the industry average turnaround time is from three weeks.
Ben Lloyd, our Managing Director commented about BIG, saying:
“They are an absolutely outstanding lender for complex jobs, especially in a time sensitive situation. I can tell that the BIG team worked as fast as humanly possible and that they wanted to prove that they could get this deal done.
“I worked very closely on this deal with Lee Bushell, the founder and principal of BIG, to make the deal happen.
“Even though there wasn’t a second valuation, which would turn off many lenders, BIG were comfortable with their own research that the asset was worth significantly more and decided to progress with the loan without the need for a new valuation.”
Could A Second Charge Bridging Loan Help You?
Whether you run into additional costs or simply need to free up funds, bridging finance can help extend your lending.
A flexible form of lending, with most types of credit history considered, get in touch with our team of specialist brokers to see how we can help you.