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.
DEVELOPMENT FINANCE
Available to developers and investors with a track record in residential development and / or refurbishment
JOINT VENTURES
We will consider putting up to 95% of costs for residential development of refurbishment and joint ventures.
