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