Loan for Jersey Property

5th October 2021

Jack Goguelin

Large briding loan for Jersey property
Jack Goguelin

Jack Goguelin

Key facts:

  • Freehold estate in Jersey
  • Loan amount: £7,200,000
  • Security value: £12,000,000
  • Margin: 8.5% per annum
  • 1.5% arrangement fee, 0.5% exit fee
  • 12 month term 

Bridging finance is a short-term mortgage secured against your property and is often used to buy a new home before your current property sells, renovate a property before you put it up for sale or upsize or downsize without going through a lengthy mortgage process. 

The £12 million property in question was on the market to sell under court order and the existing mortgage had expired. As such, the client needed a loan of £7.2 million to replace existing debt and release fees for the trustees to manage the estate. 

If you need a bridging loan of 3 million or above, you’ll find it hard to get the best deal by approaching lenders directly. This type of loan is fast-moving, complex and lots of different parts need to come together at the same time. 

In this particular situation, the key was a quick turnaround while still maintaining a competitive headline interest rate. As we have a number of bridging lender connections, we were able to induce a degree of competition to extract the best rate possible. The clients were delighted with this result - the property was sold and loan repaid after 7 months. 

As this case illustrates, just because you need a bigger loan, that doesn’t mean you’ll have to endure a lengthier transaction. Enness will be able to secure offers for large bridging loans as quickly as possible and always within the timeframe you need.