RESIDENTIAL BRIDGE 

Loan to complete a development project secured against multiple residential assets

Loan amount: £1,300,000
LTV: 58.80%

Purpose: The borrowers wanted to raise funds to commence the development of a site in West London that they already owned unencumbered. The council had approved a scheme which allowed the existing property to be demolished and the construction of 2x new build houses on the plot. Rather than secure funds via a traditional development facility, the borrower approached Pivot to release funds against their BTL portfolio instead. This reduced the cost of the loan and associated fees too. 

Exit: Portfolio refinance with high street bank.

Interesting facts: Despite having no development experience, we were happy to provide a loan. The borrowers were experienced landlords with a portfolio of BTLs in the south-east of England and West London. Pivot do consider first time developers, and in this instance 2 possibilities were put before the borrowers: 1) development loan secured against the development site funded in drawdowns, or 2) bridging loan secured against the portfolio of BTLs with all funds released on day one. The borrowers opted to go for the 2nd option.