Case study 1
Product: First charge pre-planning bridge
Security: Mixed used building in South West London
Gross Loan: £650,000
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
- 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