HFBS provides £68,000 bridging loan

HFBS provides £68,000 bridging loan

Holme Finance Bridging Solutions (HFBS) has delivered a £68,000 first charge bridging loan to a property developer for the purchase of a semi-detached house.

The three-bed house had been converted into two flats.

The bridging loan was provided against a valuation of £137,500.

Contracts were exchanged with a delayed completion date set at six months, however, the development suffered a number of unexpected problems and delays.

HFBS provided the funding just days before the completion date, at which point the developer would have potentially had to give the two fully renovated flats back to the vendor.

The developer will now be able to complete on the purchase as agreed and organise refinance once he has secured tenants for both units.

Dan Yendall-Collings, senior underwriter at HFBS, said: “In theory, the delayed completion date would have enabled complete renovation works, at which time, upon completion, a traditional mortgage route could be explored.

“However, with several unexpected problems and delays, the six-month period passed quickly.

“With the properties not quite completed, and the completion date looming, the developer’s broker approached us for a bridging loan.”

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