Case study 1

Product: First charge pre-planning bridge

Security: Mixed used building in South West London

Gross Loan: £650,000

LTV: 84.99%

Term: 12 months

Borrower Type: UK based development company

Purpose: The loan was used to fund the purchase and planning costs to allow the site to be converted from mixed use to residential. 

Exit: Development finance

Key points:

  • An external planning opinion was sought based on the borrowers proposed scheme. The planning opinion was positive, subject to some minor amendments.
  • It was a condition of the loan that the recommendations of the planning opinion be followed, in order to maximise the possibility of obtaining planning permission.
  • As such, Pivot were happy to lend up to 85% of current value / 65% of hope value.
  • Evidence of development finance as exit was provided prior to completion.
  • Personal guarantees taken from company shareholders
  • Debenture taken over the company