pRE-PLANNING

Case study 3

Product: First charge pre-planning bridge

Security: Residential investment property in North London

Gross Loan: £580,000

LTV: 72.35%

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

Key points:

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