- Client: British National & Monaco Resident
- Property: Vacant commercial unit in London
- Property value: £1,500,000
- Loan amount: £1,125,000
- LTV: 75%
- Rate: 0.7% per month, variable
Enness was approached by a British national living in Monaco who was looking to finance the development of a vacant commercial unit in London. With time being an important factor, the client needed a funding solution that could move quickly, making bridging finance a suitable option to explore.
The client required £1.125 million against a property valued at £1.5 million, representing 75% LTV. The key challenge was finding a lender comfortable with the proposed development, the commercial nature of the property and the client’s international residency.
For bridging transactions, lenders tend to focus closely on the underlying property, the overall risk of the proposal and, importantly, how the facility will be repaid. Understanding these points from the outset allowed Enness to approach lenders with a clear picture of the transaction rather than relying on a standard lending structure.
Enness identified a specialist lender able to accommodate the circumstances and structured a £1.125 million facility at 75% LTV. The resulting terms provided the client with the short-term funding required to progress the development, subject to the agreed lender criteria and exit strategy.
The case highlights the value of having a clear financing structure when speed is important. Commercial development projects can involve a number of moving parts, and the right lender needs to understand both the property and the proposed route through to repayment.
For developers, experience, track record and the strength of the underlying project can all influence the terms available. Equally, the right lender may be prepared to take a more considered view where the transaction falls outside the appetite of mainstream providers.
Enness works with clients across a range of property development scenarios, from established developers to those undertaking their first project. If you are considering bridging finance for property development, we can assess your requirements and explore specialist lending options suited to the transaction.
Risk Warning:
Bridging finance carries risks. Development projects can experience delays, unexpected costs or changes in property values. If you do not meet the terms of the facility, the lender may take enforcement action against the secured property. You should ensure that a credible and achievable exit strategy is in place before entering into the facility.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, project assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed development.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
