This piece of land located near Bristol had planning for a residential development. 56% of the development would be affordable housing using all of the latest energy efficiency techniques available and providing a range of owned, rental and affordable modern homes.
The borrower was in the process of securing development finance and had an agreement in principle in place, however this was a couple of months away and there was a deadline to complete on the purchase from the local authority.
It was at this point the broker came to Hope Capital asking for a short three-month term bridging loan.
The borrower, aided by their broker, provided us with copies of the planning permission, and detailed investment paper for the development and a CV with their range of development experience over a number of sites.
We were therefore confident in the borrower’s ability to secure development finance as an exit route from the bridging loan, within the predicted three-month timescale.
We offered a 40% LTV bridging loan and Hope Capital completed the deal just four days after the initial enquiry.
As sometimes happens, the borrower needed to extend the term of the loan by two weeks. As the borrower made us aware of this in plenty of time and provided us with a full update from their broker and solicitor on the progress of the refinance to development finance, we had little issue in allowing the extension at the same rate as the existing agreement.
Once the two-week extension was over the borrower redeemed as planned and started the development on the site.
“Timings were really tight and you pulled it out of the bag, going above and beyond – thanks so much on behalf of both the client and myself.”
WHAT THE BROKER SAID
Miriam is responsible for developing the overarching marketing strategy and implementing the strategy across all marketing channels. This will both expand and deepen the relationships with brokers and key partners within the industry.