Our client had recently built a detached, luxury home in Wimbledon, London having purchased the land (with planning) in 2018 for £1.86m. The borrower undertook the project using a development loan, which naturally had a specified time-limit.
The property is located in an affluent, sought after area and due to the high quality of the accommodation, this was a fantastic investment project and opportunity for the client.
After the works had been completed and the property was ready to be offered for sale, the borrower needed to exit the development loan and this is where Hope Capital stepped in.
The client needed to exit the development loan at the end of December, so they needed a bridging lender who could deliver in the run up to Christmas, to replace their existing finance with a new loan. In this case, a bridging facility of just over £1.86m was needed.
The borrower was particularly impressed with how Hope Capital were able to deliver an exceptional service and complete just two days before Christmas, when most lenders were closed.
Helping clients navigate their way through this sort of refinance, is something Hope Capital have a significant amount of experience handling and were more than happy to assist, even with the deadline during the height of festivities.
We were able to offer the borrower the large facility at 63.3% LTV and agreed a loan term of 9 months, enabling them to cover their initial facility, pay for solicitor fees and so on. The deal however, was redeemed after only 4 months. Overall, the client was delighted with the result we delivered and the service we provided throughout the whole process.
Refinancing has several potential benefits, e.g. it can enable a client to borrow additional funds when they most need it, it can reduce monthly payments if the loan has an interest rate that is lower than the existing arrangement, thereby providing a convenient solution to the borrower.