Residential Bridging Loan Wirral
The best way to explain the power of bridge loans is to give you a real life example…This is a project we funded back in early 2023.
A Grade II listed 4 story building in the very heart of Hamilton Square in Birkenhead, the square is full of Georgian buildings, most of them Grade I or Grade II. The building was originally being used by a firm of Solicitors but they decided to move to an out of town business park, so our clients (who owned the building) took the opportunity to convert the building into self contained apartments. Wirral (like a lot of areas) has a housing shortgage so Wirral Council approved the change of use and granted planning approval within just 7 weeks.
Our client approached us repay their existing bridging lender £212,500 and capital raise an extra £60,000 to refurbish the building. Furthermore, the existing lender was putting huge pressure on our clients to repay their loan or to at least demonstrate that they were some way down the line to refinancing their loan.
How we solved it
We produced a Decision in Principle (DiP) to demonstrate that we were committed to lend and this was sufficient for the other lender to ‘back off’ and allow our clients the time to refinance with us. A Decision in Principle highlights the main points of our loan, such as how much we will be lending, the interest rate and other fees.
We instructed our Solicitor (who is vastly experienced in Bridging Loans) and arranged a valuation within 4 working days. Just 3 and a half weeks later we provided a loan of £272,500 with £212,500 of that being used to repay the lender and the remaining £60,000 was drawn down in stages as and when refurb work was completed.
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