Two recent cases show how large bridging loans can be quickly arranged for complex deals. An investor in London needed £1 million to finance the purchase of four residential units in London. The investor had arranged a loan for the deal, but his lender pulled out at the last minute, according to the Mortgage Introducer website. This threatened the deal as there was a deadline for the completion of the purchase. The investor approached a bridging broker who managed to raise the £1 million. The whole process took just eight days from the initial contact to the funds being available. In another case featured in Bridging & Commercial, an investor wanted to purchase a hotel in Northamptonshire. The company that owned it had gone into receivership. The official receiver put a 12-day deadline on purchasing the hotel, much too soon for a commercial mortgage to be arranged. The borrower needed £325,00 to purchase the hotel and a further £225,000 for renovation. A meeting was held with the local planning officer, a bridging finance broker, the valuer and the purchaser. They discussed any delays that could affect the project. All the parties involved in the loan application worked together to ensure that the loan was available within the 12-day deadline. Most deals do not have short deadlines, so a bridging loan would typically take a week or two to arrange. If you need finance quickly, it is good to know that a broker can work with lenders, valuers, and solicitors to make sure that the process is speeded up.
May 10, 2022
