Bridging Loan Case Study – Plains Road, Nottingham & The Rank Gnosall
By: James Newland
This joint venture loan was for an experienced property investor and developer. The loan was to purchase Plains Road; the borrower had a 12-month option that was due to expire and needed a bridge.
|Loan to Value||70%|
|Interest rate||1.25% pcm|
|Term||6 months (repaid in 4 months)|
To Maximise the loan, amount the borrower used another property in Gnosall as security. During the option period the borrower had applied for planning to demolish the existing building and build 5 detached houses on the half acre plot. They agreed to sell to another developer for £6000,000 subject to planning which they duly received and the sale went through in the 4th month of the loan.