Case study 2

First charge loan secured against a residential property in Central London.

LOAN AMOUNT: £871,000

LTV: 64.53%

The borrower approached Pivot for a short-term loan to refinance an existing first charge loan, in addition to refurbishing the 5-bed mid terraced house in Central London. Exit was refinance onto a BTL mortgage.

The borrower initially gained planning to convert the existing house into two self-contained flats, however, after a previous valuation revealed it would be more profitable to refurbish the existing welling, the borrower decided to pursue this option instead. Once refurbished, the borrower intended to rent the property whilst obtaining planning for a third floor.

Pivot provided this loan on a drawdown basis, and was able to provide a gross day one loan against the existing use with planning, and the total gross loan against the GDV.

Some minor adverse credit was disclosed by the borrower, however a full explanation was provided and Pivot was satisfied this would not be repeated.

The borrower had limited experience though the experience of the main contractor himself minimised this risk.