Increased Involvement In Development And Renovation Finance
In the last few months Bridgingloans.co.uk has substantially increased its involvement in locating the funds needed to cater for the surging demand for development and major renovation requiring finance. Bridgingloans.co.uk which is a trading style of Penuptra Consulting Ltd is a directly FCA authorised and regulated business focusing almost entirely on niche area funding. The company has an enhanced reputation of being a “one stop” financial shop where brokers and members of the general public alike can with one simple telephone call or email, access a wide range of property related finance expertise and money. The offering includes brokering for residential, commercial, BTL and equity release first charge mortgages, secured second and third charge loans, general insurance products, and first, second and third charge etc. regulated and unregulated bridging loans which can be secured on solely or a mix of land, property or commercial units.
As part of its drive into the development funding arena, Bridgingloans.co.uk has in recent months become involved in a multi-apartment, mixed use, 3 stage development on the South coast of England. The client, a recently formed limited company where the Directors have a huge amount of experience and specialise in obtaining planning permission for difficult sites and projects, agreed a purchase price for the brownfield site subject to eventual planning approval. They then spent the next 2 years with much time, effort and money in obtaining the formal approval. With planning now agreed, the value of the land had increased substantially, way beyond the price our client had originally agreed to pay the seller and as such this made the proposal very advantageous to our client and you would have thought, many lenders. Our client then trawled through the normal high street bank culprits in an attempt to locate the development finance required to complete the project before selling the already pre-sold units but unfortunately for one reason or another our client was rejected.
Luckily, bridgingloans.co.uk was then recommended to our client via his local bank. Due to the increase in valuation, we submitted the case to one of our large and varied panel of commercial lenders and managed to enable the size of the purchase loan available to be based on the actual valuation of the land (with planning), not the purchase price (which was without planning). This pretty much meant that our client who had already spent a substantial amount of time and money in obtaining the planning permission could now purchase the land without any further down payment from themselves.
The achievement of planning also increased the land value to such an extent that our client required minimal remaining financial input to complete the build prior to the properties being sold off to pre-agreed purchasers.