Bridging loan case study
Non-Regulated Development Exit Bridging Finance
Discover how ABC Finance bridging loan experts helped this client secure a non-regulated development exit bridging loan.
The loan
Location
Midlands
Capital raised
£350,000
How funds were spent
Development exit
The request
Our client had recently completed a ground up development valued at £800,000 and was looking to repay his current £350,000 property development finance facility.
Due to the high fees and interest rate increase for extending his current loan which would ultimately eat into his profit, he approached us to see if we could assist.
Switching to a development exit bridging loan would reduce interest costs, afford the client a longer loan term and give the client sufficient time to achieve a strong sale price for the completed properties.
The solution
We were able to refinance the whole debt before his facility ended, at a much lower interest rate than he was already paying, allowing him further time to sell the property. Even with arrangement and legal fees, he made a larger profit by refinancing.
Upon sale of the property the loan will be repaid and the equity used to reinvest into another build.
1.5% lender fee, 0.69% per month interest rate.
Lee Hemming
Sales Director
Talk to Lee about development exit bridging finance
If you’d like to find out how ABC Finance can help you finance any type of bridging loan, get in touch with Lee today.
Lee Hemming is a specialist bridging loan advisor at ABC Finance with years of experience arranging the right finance solutions for our customers. Call, email or contact ABC Finance today to learn more.
More bridging loans
Bridging Loans
Development Exit Finance
Property Refurbishment Finance
Read more about bridging loans
Bridging Loan Costs
Using Property Refurbishment Finance to Increase Your Property Investment Returns
