Case study 3
Product: First charge pre-planning bridge
Security: Residential investment property in North London
Gross Loan: £580,000
Term: 12 months
Borrower Type: UK based company with limited property experience
Purpose: The loan was used to purchase and obtain planning to convert a single dwelling into 4 flats.
Exit: Development finance
- Pivot granted a second charge to another lender who was providing some of the equity for purchase.
- The planning opinion was positive based on neighbouring buildings having been extended and converted into flats.
- The backup exit was to refurbish as a single dwelling and rent out on the open market. A DIP from a high-street lender was obtained as evidence.
- Personal guarantees taken from company shareholders
- Debenture taken over the company