Case study 2
Product: Second charge residential refurbishment bridge
Security: 2 residential properties in Middlesex
Gross Loan: £1,300,000
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
- 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