Case study 2

Product: Second charge pre-planning bridge

Security: Residential investment property in West London

Gross Loan: £500,000

LTV: 71.56%

Term: 12 months

Borrower Type: Individual with minor credit issues

Purpose: The loan was used to repay the existing first charge, which had reached maturity, and fund a planning application to add a basement and second storey to the property.

Exit: Development finance

Key points:

  • The planning opinion was positive and as the borrower was not particularly experienced, Pivot helped him through the process.
  • The property had tenants in, so the backup exit was high street refinance if planning was not granted.
  • Occupancy waivers were obtained from the tenants.
  • The minor credit problems the borrower had experienced would not have a detrimental effect on his ability to repay the Pivot facility via development finance. 
  • When planning was granted, the borrower asked us to enter into a S106 agreement with the local council.