An experienced development team approached us to help them arrange a bridging loan of nearly £3.5 million. The developers needed the loan to be able to purchase a vacant care home in London that was set in a significant plot of land. The care home had been put on the market with plans to turn it into a housing site, given there was a severe lack of stock in the area. However, the developers, who have an extensive property portfolio, recognised there was a continuing need for specialist care in the area. To that end, they found a care home operator who agreed to lease the property it once it is refurbished and extended.
Needing to move quickly to capture the business opportunity the property represented, we had to arrange the loan quickly for the developers. We negotiated an 18-month, part rolled, part serviced interest, unregulated bridging loan for the client at 9% per annum. Understanding the urgency to complete the transaction given the competition for the property, we were able to arrange funding ten working days after receiving the valuation. The client was then able to purchase of the site for £5.25m.
The client was delighted with the outcome and has now put forward a proposal to the local authority planners to build new homes on part of the site – meeting the council’s urgent local housing needs, at the same time as pushing forward with their plans to refurbish and extend the care home.