Case study 1
Product: First charge residential refurbishment bridge
Security: Various mixed-use buildings in the South East
Gross Loan: £640,000
Term: 12 months
Borrower Type: UK based development company
Purpose: The loan was used to fund the purchase and refurbishment of one of the underlying assets.
Exit: Sale of some of the underlying properties
- Pivot lent against the current value of the assets, including the one that was to be refurbished.
- It was a condition of the loan that the borrower provided regular updates and photos of the refurbishment.
- Once the refurbishment was complete, the property was revalued and we were able to provide the borrower with additional cash to purchase his next investment.
- The borrower had to provide evidence that the exit route properties were on the market prior to completion.
- Personal guarantees taken from company shareholders
- Debenture taken over the company