Sold! Hope Capital provides fast auction finance to secure deal for client
London
Facility
£288,750
Loan Term
8 months
LTV
75%
Commercial refurbishment makes for a great investment.
Facility
£1,068,000
Loan Term
12 months
LTV
60%
Situation
This particular client was looking to secure a relatively large bridging loan of £1,068,000 to fund the purchase of an unused three-story commercial property, which they were keen to invest in as a commercial refurbishment project.
Using a bridging loan for commercial investment purposes provides the ideal solution for those looking to make the most of this kind of opportunity. While a traditional mortgage can be used for this purpose, bridging finance not only enables the borrower to access funding a lot more quickly, but in most cases, the loan can be tailored to fit the client’s specific requirements.
In this case, the borrower’s plan was to obtain a bridging loan, so they could be in a position to purchase the premise and then use their own funds to complete light refurbishment works, transforming the building into a desirable space ready to rent out to multiple business tenants.
Solution
Typically, a bridging loan for commercial purposes is considered more of a high-risk deal for lenders, as there are fewer options to exit the loan in a relatively short timeframe.
As a result, it is often the case that the borrower will usually have to put up extra assets they own (e.g. other properties) as security before reaching an agreement with the lender.
In this scenario, it was agreed with the borrower that we would facilitate the funding needed at 60% LTV, for a loan term of 12 months and in addition, we would take a comfort security over a separate, unencumbered property.
Result
Once the loan had been issued, the client was successfully able to purchase the premises, complete the necessary light refurbishment works and then add the new office spaces to the market for various business owners to utilise.
Following successfully getting tenants in place, the client was then able to refinance onto a longer term buy-to-let mortgage.
While some lenders would be uncomfortable in making this type of loan, this was no problem for Hope Capital. We have over 10 years’ experience working with brokers and their clients in helping them achieve their commercial investment goals. The knowledge and experience of our team ensures we can deliver this type of solution and we were delighted to be able to help this client navigate their way through the loan process.
Emily Crowe
Emily is responsible for developing, implementing and managing the positive image of Hope Capital, as well as communicating key messages to stakeholders within the industry.
For all press enquiries, please contact Emily directly on 0151 522 2582 or via email.
Get in touch
Fill in the form and one of our team of experts will get back to you to discuss how we could help.
or call us on
Related Case Studies
Sold! Hope Capital provides fast auction finance to secure deal for client
London
Facility
£288,750
Loan Term
8 months
LTV
75%
Hat-trick: Speed, flexibility and affordability delivered to get the deal over the line
Newport
Facility
£92,092
Loan Term
7 months
LTV
52%
Land with planning secured with a fast bridge
Bristol
Facility
£406,000
Loan Term
3 months
LTV
40%