Case study 2

Product: Second charge residential refurbishment bridge

Security: 2 residential properties in Middlesex

Gross Loan: £1,300,000

LTV: 67.73%

Term: 12 months

Borrower Type: UK based development company

Purpose: The loan was used to fund the refurbishment of a main residence and an investment property prior to their sale. 

Exit: Sale of some of the underlying properties

Key points:

  • Pivot lent against a first charge on the borrower’s main residence. As the loan was to a UK company the loan was unregulated. There was also a second charge against one of the borrower’s investment properties.
  • It was a condition of the loan that the refurbishments be completed within 6 months and evidence be supplied to Pivot to show they are on the market.
  • Personal guarantees taken from company shareholders
  • Debenture taken over the company