Case study: Speed was essential for a £2m bridging loan to turn commercial into residential

The specialist finance industry comes into its own when fast and effective short-term lending is required for less straightforward situations. Bridging finance is a great way to secure funds for property purchases, chain breaks and development opportunities. When speed is of the essence, bridging loans are the ideal solution. With the average bridging loan size in the market being just over £500,000 and the average industry completion time being 4 weeks, it requires an expert team to deliver on bespoke cases.

The client:

A solicitor requiring a £2m bridging loan for the purchase of a large commercial unit to refurbish into residential with a very quick turnaround. Speed was critical in this case.

The situation:

The client was a solicitor looking for a rapid turnaround on a bridging loan to allow him to purchase an old Beatties department store in the heart of Wolverhampton city centre. The intent was to develop the commercial building into residential units, however full planning permission was not in place and this caused an issue for most lenders. The building was split into four freehold titles containing shops, a nightclub, a warehouse and workshop - and it had potential for development into either student accommodation due to its proximity to the main university.

The client needed money quickly and the main issue was that no lending option was available for conversion of property once purchased.

Solution:

Large complex bridging loans are something that the team are used to dealing with, have great knowledge on how to underwrite and secure finance. The broker knew that without planning in place most bridging lenders would not accept the case and provide the required funds. The specialist finance market opens doors that traditional lenders just do not have access to. In this case the team were able to quickly underwrite the case, source and provide the lending for the client – ensuring the rapid turnaround needed by the client.

Benefit:

The access to the pool of unique lenders helped this case and ensured the speed of delivery. The team knew the market and the years of experience with dealing with complex cases meant that they only approached lenders that had an appetite to lend on this type of scenario.

Result:

Enterprise Finance worked quickly to source and provide lending on this case that most lenders would have turned away due to lack of planning permission. The team were able to exceed expectations and ensure the client had the funds in only 14 working days from enquiry to completion.

If you have a client case which could benefit from this speedy approach, we can help. From bridging loans to Second Charge mortgages - we live and breathe specialist finance and are here to make your job easier. To find out more, drop us a line or give us a call on 020 8731 5333.