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Bridging LoansCase Studies

Bridging Loan Case Study – Plains Road, Nottingham & The Rank Gnosall

By July 17, 2016June 27th, 2024No Comments

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 £504,000
Valuation £710,000
Loan to Value 70%
Interest rate 1.25% pcm
Total Return £22,668.76
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.

BRIDGING LOANS

Bridging loans provide the borrower with short term finance secured against property assets.

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DEVELOPMENT FINANCE

Available to developers and investors with a track record in residential development and / or refurbishment

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JOINT VENTURES

We will consider putting up to 95% of costs for residential development of refurbishment and joint ventures.

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