Our client was looking to borrow against an inherited property to repay an existing bridging loan secured on his own property which was arranged to consolidate debt.
The repayment strategy for the initial 12-month bridging loan had failed as the estate agents were unable to sell the property in the intended timeframe, hence the need to repay this loan as it had come to the end of its term and the current lender was needing repayment. Our client also wanted to raise additional funds to pay for medical costs and to repay money owed to family members which had accumulated during the term of the current loan, following a bereavement.
Finance raised on an inherited property
The inherited property was unencumbered and had to be transferred into our clients name as part of the transaction. UK Property Finance were able to arrange a new loan for our client whilst we used our vast industry contacts to keep in constant communication with their existing lender and solicitors to ensure they remained abreast of the situation and knew the client was doing their utmost to arrange repayment of the loan.
On agreement of the new loan the solicitor provided an undertaking to the lenders solicitors confirming that when the new loan was advanced, the inheritance duty was paid and our clients interest became listed on the property deeds as owner. The clients’ solicitor also confirmed that they would ensure the remaining advance was used to repay the existing bridging loan secured on our clients current property and the medical bills accrued.
The exit or repayment of the new bridging loan was still via sale and due to the extended timeframe agreed our client was able to sell his property without further stress and once the sale was complete our client took up residence in the inherited property which was now owned free of any loans.
Having been rejected for a mortgage, our client was now looking for a bridging loan to buy a new residential property before his current one sold. The loan was to be secured on the purchase property only, as it was of enough value to borrow the loan required and because the client’s current first charge lender would not allow a second charge consent on the current residential. The rest of the purchase price was made up of savings.
UK Property Finance has access to all the main premium rate lenders in the market, which also allows us access to many special rates starting at below 0.4%.
“This was no ordinary house”
The client was looking to exit the loan by mortgaging his purchase property. However, the finance was not available at this stage due to the client’s lack of the first full year’s accounts from his new business venture. The mortgage had been declined, leaving him short of time to complete the purchase of his desired property. This was no ordinary house, as was soon revealed; it was once owned by the client’s parents and was where he had spent much of his childhood. The considerable sentimental value to our client spurred the team to find a resolution.
“The dream team quickly assembled into action”
Indeed, due to the time taken before contacting UK Property Finance, the vendor had now threatened to pull out of the sale if completion did not occur within one week. We were told of the urgency during our very first contact with the client and following an initial fact-finding process.
The dream team quickly assembled into action and instantly provided a quotation for the client’s requirements. The client wanted to proceed, so within 2 hours we had obtained an agreement in principle at the most competitive rate in the market. UK Property Finance also negotiated with the lender to allow an automated valuation, which would make the process much quicker. The team immediately created the finance pack and uploaded it to the document collection company, which met the client at 8 p.m. that evening, by upgrading to a premium service. By the time we opened for business at 8 a.m. the next morning, the finance pack had already been scanned and emailed back, so it could be rapidly submitted to the lender.
By liaising closely with the lender, who lost no time in completing the underwriting and automated valuation, this enabled an offer to be received on the same day of submission. The offer also went to the lenders and the client’s solicitors, who had been warned about the urgency of the case. Even with some minor delays, UK Property Finance continually chased this regulated bridging loan to complete within a week of initial client contact. Continued support for our client meant UK Property Finance could arrange a mortgage for the client to repay his bridging loan within 3 months of funding.
UK Property Finance is not just a bridging loan specialist and can offer many different lending solutions. To find out how we can support you, please contact us at 0116 402 7982.
BridgingLoans.co.uk was established to offer borrowers spanning the entire spectrum affordable, accessible, and fully responsible financial solutions. We have several potential advantages over and above conventional loans, one of which is that there is no requirement whatsoever for a positive credit history. In addition, self-employed applicants are welcome, and repayment options are kept as flexible as possible.
As these types of loans are secured using a wide variety of assets, qualification criteria can be significantly simplified. In terms of what types of borrowers could find value and convenience in a secured loan, our products and services are suitable for both business and domestic purposes alike, or whenever typical unsecured loans are unsuitable.
Just a few examples of the types of loans we target include:
- Equipment finance: We may finance the purchase of industrial manufacturing machinery, agricultural equipment, marine vessels, aircraft, and various other vehicle types. These loans may be offered in the form of hire-purchase contracts, equipment leases, or structured in other ways, by the preferences and requirements of the borrower. These loans will be secured in most instances against the respective equipment. These kinds of loans will be offered to businesses, non-profit organisations, government institutions, and various other borrowers for key equipment purchases of all sizes.
- Property development: We will also be targeting property development loans, ranging from small-scale residential requirements to much larger commercial and industrial development projects. In such instances, the property in question will be used as security for the loan.
- General commercial loans for businesses: Secured loans can also be of unique value as commercial loans for a multitude of business purposes. These kinds of loans are typically secured against a wide variety of business assets, which may include business premises, machinery and plant, intellectual property rights, and various other assets.
- We strive to remain as open and flexible as possible when it comes to the security required to obtain your loan and consider all borrower circumstances individually and uniquely.
- Debt consolidation: In addition, another common use for secured loans is for debt consolidation purposes. Both in professional and domestic instances alike, an affordable secured loan taken at the right time can be not only liberating but also bring about enormous immediate and long-term cost savings. The idea of consolidation is that the borrower takes any number of existing debts and combines them into a single loan with the lowest possible rate of interest. Once again, with no credit history being required in most cases, secured loans can often prove far more accessible as debt consolidation products than typical unsecured loans.
For more information on any of our products or services or to discuss your eligibility for a secured loan, get in touch with our customer service team today.
The team at UK Property Finance has always measured its success in terms of satisfying the needs of its loyal customers as opposed to simply making a quick buck. Since the second we started in this business, we’ve always tried (and succeeded) to do things differently while offering streamlined, easily accessible, and highly flexible finance to borrowers at any level in the property investment and real estate development sectors.
When you are constantly out on a limb, forever doing your utmost to please your customers with every financial package you broker while delivering a superb level of service that your competitors would never dream of providing, it’s always nice to receive a little recognition for your efforts and the support of your peers. This is precisely why we are so unashamedly proud and completely over the moon to have been nominated for the ‘Best Bridging Broker’ title at this year’s internationally revered Bridging & Commercial Awards, a ceremony that pinpoints and celebrates the best performers across the entire spectrum of alternative finance providers in the UK.
2017 bridging and commercial awards
“Bridging & Commercial is proud to announce the shortlisted nominees for the 2017 Bridging & Commercial Awards, in association with Titlesolv. The top brokers, lenders, and individuals in the bridging, commercial, development finance, peer-to-peer, and specialist banking markets have been shortlisted and are now in the running to win one of the industry’s most prestigious awards.” – Bridging and Commercial
At a time when banks, building societies, and most other mainstream lenders are tightening their belts and turning an increasing number of borrowers away, we have been busily providing practical, alternative property development finance solutions for individuals and commercial developers at all levels of experience and with portfolios of all manner of shapes and sizes. First-time buy-to-let landlords, new-build housing developers, and those who purchase and renovate properties at auction have all used our services to provide an essential lifeline that enables them to flourish and succeed in a world where the main finance providers of yesterday are seemingly unwilling or genuinely unable to help.
Our unrivalled commitment to offering intelligent and highly bespoke property financing for our diverse cross-section of enormously varied clientele has resulted in our company name being shortlisted for the 2017 Bridging & Commercial Awards as one of the country’s leading bridging loan brokers. With the voting stage now completed (the judges’ final decision was made earlier this month, on May 18th), we now find ourselves waiting, with a true sense of excitement and trepidation, for the official results to be delivered on June 8th at The Hurlingham Club.
(You can find out more about the event and the complete list of nominees at the following link: http://www.bridgingandcommercial.co.uk/article-desc-11886_B&C-Awards-2017-shortlist-announced.)
Whatever the outcome, the team at UK Property Finance is already overjoyed and celebrating!
Regardless of whether we win or lose, the fact that we have been nominated in the first instance is a worthwhile award in itself and one that we are extremely proud to have received!
Britain’s leading choice for alternative intelligent finance seeks clampdown on negligent lenders
Unregulated finance brokers who are currently offering inappropriate funding solutions for those in genuine need of responsibly sourced products are finally about to face serious action from the Financial Conduct Authority, a firm decision that the team at UK Property Finance believe is sorely overdue while echoing the sentiments vocalised by the FCA in their recently issued statements.
According to the FCA, many of the mortgages and secured loan products offered to borrowers by unregulated lenders have led to a growing number of both residential and commercial customers facing complete ruin. As a direct reaction to this unprincipled lending practice, the FCA is now advising all potential borrowers to exercise a significantly increased level of precaution when dealing with the brokers and lenders that they are considering applying to for finance.
If you have been offered property finance or borrowed advice from a lender that is not an FCA-regulated body, then it is almost certainly in your best interests not to proceed.
Unregulated lenders should be avoided at all costs
“A large percentage of the problems we have witnessed in the industry, from the crash of 2008 onward, have been caused by regulated brokers participating in activities that are outside the’regulatory perimeter’. However, our resources are limited, and it is therefore essential that we use them as effectively as possible to maximise our impact. If our objectives are endangered by unregulated bodies, then we shall be forced to operate outside the perimeter wherever necessary.” FCA (Financial Conduct Authority)
When it comes to identifying the main root of the problems faced by the financing sector, the FCA is quick and forthcoming to cast the finger of blame directly on those who are involved in unscrupulous lending practices. Each time a borrower decides to work alongside an unregulated finance provider that is not committed to offering a level of service that is completely above board and delivered with assiduousness, a serious and unnecessary risk becomes almost inevitable.
Although a high degree of caution is recommended for those looking for cheap mortgages and other secured borrowing products, it has become increasingly apparent that many are not following the warning. With this in mind, UK Property Finance has advised that if you are going to deal with a broker offering greater levels of convenience than a high-street lender, then you should only do business with an FCA-authorised and regulated broker, regardless of the service or product required.
A dramatic increase in bridging loan popularity
Bridging loans are unique and easily accessible financial products that are suitable for those in need of short-term funds that are to be paid back in either a closed or open timeframe. The team at UK Property Finance has noticed a large and widespread increase in the number of bridging loan applications they have processed over the last few years, with business going from strength to strength. Offering fast and uncomplicated access to exclusive funding that banks and high street lenders are unable to provide, bridging loans are the perfect choice for landlords, developers, and property investors from all backgrounds and in every part of the UK.
UK Property Finance is delighted to announce an expansion to our development team, with a new team member having recently joined us.
A former advisor from Lloyds Bank, Luke Hosea, has recently joined our rapidly growing team and brings with him a wealth of expertise and insight into the sector.
He is joining the company to expand our development finance projects. He has a strong background in the finance market, having worked in the industry since leaving school. Luke has spent a year travelling in the United States of America and Australia, which he found thoroughly enjoyable and an experience of a lifetime.
He now wishes to further his career within the finance industry, which has been his main vocational interest throughout his school years and travel experience. He has sound experience in the business-to-business finance sector and is a great new member of our development team.
We wish him all the best in his time here at UK Property Finance.
A client with a number of London-based properties in his real estate portfolio recently approached us for bridging finance in order to fund the purchase of a large office building in the Birmingham area, which he planned to refurbish before selling on for a considerable profit. In order to get the lowest interest rate on the loan, our client managed to raise £3 million using his residential flats in the capital as collateral. Around 8 months into the bridging loan, with 15 weeks to go before the end of the loan term was reached, we called the client to check that everything was on track, which is when we discovered that the agreed exit strategy had fallen through owing to unforeseen circumstances.
As leading bridging loan experts, we set about sourcing an alternative finance plan, which our client could use to settle the outstanding debt plus the associated borrowing fees. The London-based flats that the client had used as security were in a prime location, and with rates being an important aspect of the refinancing solution, we knew exactly who to approach for the required funds.
Within less than a week, we were able to source a new 12-month loan with low borrowing rates and a value of £3.4 million, which solved all of our client’s problems at once while affording him sufficient time to repay the new debt while completing the sale of his recently refurbished commercial property. Both the lender and client were highly satisfied with the new terms, and our client made the profit he was looking for without losing the properties that he provided as security in the first place.
UK Property Finance has a long-standing relationship with many property investors and excellent customer feedback from our clients as a whole. We pride ourselves on only offering the very best levels of service, and we achieve this through the commitment of our staff and the high standard of lenders with whom we choose to work.
UK Property Finance is a “whole of market,” directly FCA-authorised and regulated master finance broker specialising in bridging loans, development finance, and commercial finance. Our “Whole of Market” broker status enables us to source bridging loans and development loans from any lender in the market, enabling us to provide the very best rates.
The last six months have seen a marked upturn in lenders’ willingness to fund property development deals, from small refurbishment projects to multi-million-pound new-build developments. At Bridgingloans.co.uk, we have been able to take full advantage of this volume increase due to our expertise in the marketplace.
Recently completed deals have highlighted just what issues can arise:
- On a small barn development, it was found at the 11th hour that the client’s insurance did not cover her for the full risks involved, and the lender would not draw the funds. Solution: We introduced our specialist development insurance broker, who quickly assessed the problem and provided the cover required in a timely manner to enable drawdown.
- During the valuation stage of a mill purchase in the North of England, the valuer identified a potential environmental risk and (quite rightly) requested a specialist report. The client looked around and obtained quotes in excess of L2,000. Solution: Through our network of specialists, we quickly identified the most appropriate local environmental specialist who completed the report in less than 10 days and at a fraction of the costs previously quoted.
- We were approached by a local property developer who wanted to reinstate the build of a site mothballed back in 2008. His issue was that his existing bank was on the verge of appointing receivers due to the dormant position on the site. Solution: BridgingLoans.co.uk were able to source a lender who agreed to both the take-out of the bank and provide the development finance and funding required. In addition, we maintained constant contact with the existing bank, which ensured the receivership was put on hold, which allowed the refinancing to take place.
In each case above, the ability to quickly identify and resolve the issues enabled the loan process to continue and lead to the completion of the case.
Through the experience of the team, we can quickly resolve the majority of issues that invariably happen during any development deal and reassure the clients that we can help overcome the problems. For both first-time and experienced developers, this added value makes ukpropertyfinance.co.uk the ideal choice.