Bridge Doctor Archive
1:My client has been offered 3 x 1 bed apts (at £180k each omv £240k+) and 2 x 2 bed (at £240k each omv £350k+) all new builds in good location in Battersea SW18.Question: this is a new company and in order to secure the first deal will need to provide security, problem being there is little available, so is it possible that a bridge may be arranged on one property on the omv, thus enabling the first purchase with the profit from the sale then being put forward to fund the further four bridges?
Sunday 8th August 2010
Your client has got themselves a very good deal (providing the valuations come in as stated of course). Most lenders, including bridging companies are still cautious about the new build flat as an asset type. As such there would be very few who lend just against OMV. The majority will lend against a percentage of the OMV or a percentage of the purchase price, whichever is the LOWER figure.
2:I have a client who owns development land with planning permission for 9 plots. He needs bridging finance to complete the purchase of the access road. LTV around 20%. Exit by way of plot sales. Any possible lenders?
Monday 2nd August 2010
"The vast majority of bridging lenders will not currently lend against land, either with or without planning, as it's a specialised area with development funding particularly difficult to obtain at present. Certain lenders in the development space, such as Regentsmead or Commercial Acceptances, may be willing to consider this development land as suitable security. However, as the borrower is not seeking to develop the plots himself, this may not be viable."
3:Property bought at auction for £150,000, and needs some refurb. My client now needs bridging finance for 6 months. Valuation of property came back at £200,000. What maximum LTV can he get and what rate of interest? What’s the procedure as well?
Tuesday 27th July 2010
While most lenders will lend a proportion of the purchase price (usually up to 65& - 70%) some might lend against the value if they are satisfied as to why there is such a difference between the two. Rates will probably range from about 1.25% - 1.5% per month. In the first instance you should phone the lenders advertising on Bridging & Commercial and they will advise you what they can do and the costs as well as their procedure.
4:My client is aged 74 with unencumbered properties in the UK. Wants to buy house abroad UK lenders wont give him a mortgage because of age. Any other options?
Thursday 22nd July 2010
Provided there is a viable exit, this should not present a problem for most bridging lenders.
5:I have a client aged 78 who is purchasing a hotel with his daughter. He has his home on the market for £160k with a £40k (Redemption Amount) equity release scheme. He requires £84k for 3 months. Exit is sale or BTL Mortgage. Is this possible at his age?
Tuesday 20th July 2010
The real problem here is not your client's age (a viable exit is more important) but the fact that he wants over 75% of the value of the property. You should explore whether the daughter can offer any security to reduce the overall LTV, otherwise this will be a difficult case to place.
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