Bridgebank backs 14% borrower

Published on

bridgebank

Bridgebank Capital has backed an experienced property professional on the acquisition and conversion of a retail property scheme, which required the borrower to invest only 14% of the purchase price from their own cash funds.

The applicant had secured a discounted purchase price on a 21,000 sq. ft. disused retail property on an Option. They then successfully progressed plans for its conversion into two separate tenanted retail units, during the Option period. Prior to expiry of the option and on gaining the planning enhancement, the borrower approached Bridgebank Capital for acquisition and development funding. Bridgebank provided a six month bridging loan against 65% of the market value of the property, irrespective of the actual purchase price.

On that basis, the borrower was only required to invest 14% of the purchase price. This resulted in the borrower also having sufficient surplus cash available to invest in the conversion and refurbishment works.

Within five months, the conversion project had been completed and tenants were occupying the two new retail units. The borrower was then able to secure a long term commercial mortgage for the property, repay the Bridgebank bridging loan and move on to another new investment opportunity.

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...