Our client expected to purchase this 15.5 acre brownfield site from local authority and sell on to an end user on same day – ie a “back to back transaction”. The end user was to effectively fund the deal, with our client not contributing any cash (other than planning and professional fees).
The end user withdrew two weeks before expected completion date in an attempt to force renegotiation of purchase price.
Client thus sought 100% funding plus the stamp duty plus legal fees to complete the deal and allow option to seek other buyers or await return of original buyer. Interest and lender/broker fees also added to loan;
We successfully secured a 100% + bridging loan funding – £2.45M (gross) drawn in six weeks to purchase land for £1.85M (but valued at £4.6M with recent planning gain) A top tier valuer supported clients assertion of value.
Funding agreed at rate of 12.5% per annum, exit fee of 2% only if loan repaid in first 6 months.
Our client said “Just a quick line to say thank you for your help in aiding ourselves in achieving the bridging loan to secure the site. It is very much appreciated and maybe in the future there will be further opportunities, however should people ever need help in this type of matter, then I would definitely put your name forward. Thanks again”