UTB’s Bridging division was approached by Matt Jarrett at Chartwell Funding with clients looking to borrow £464,000 for the purchase and refurbishment of a property in a popular town to the west of London.
Although the borrowers were experienced property developers, they had no cash to be able to seize this opportunity and therefore wished to borrow enough money to complete the acquisition and fund the £55,000 of works proposed to improve the property. The loan required was 120% of the £385,000 purchase price with an estimated GDV of £650,000 once the improvements were complete.
Advised by Matt, his clients borrowed the money through an SPV, and both offered second charges on their main residences via third party legal charges. Both borrowers and their partners took independent legal advice on the loan solution to enable them to proceed. The additional security from the equity in their homes reduced the overall LTV to 63%, allowing the borrowers to benefit from UTB’s competitive standard pricing.
With the funding in place, the borrowers were able to buy the property and complete the improvement works without the need for quantity surveyor or asset manager visits and the property was renovated and up for sale within a few months.
| Borrower | SPV |
| Amount | £464,000 |
| Loan Type | Unregulated – Refurb |
| Term | 12 months |
| Location | South |
| LTV | 63% |
| Loan Purpose | Purchase and refurbishment |
| Special Features | • Facility was 120% of purchase price transferred • Additional security provided by third party second charges against SPV Principals own homes • Loan offered at standard pricing |