A Case Study: £400,000 To Exit A Bridging Loan From Another Provider

Our client required £400,000 to exit a bridging loan from another lender.
Property worth £700,000 let to 5 separate tenants. The client will require an HMO licence in early 2016 but granted a grace period.
Lerwick succeeded in arranging a new bridging loan with a 5 day completion to repay an existing bridging lender to give the client more time to find low cost longer term finance linked to the obtaining of an HMO licence.
The clients discounted rate with the existing lender had come to an end and they weren’t in a position to redeem the loan because of the HMO situation.
The property comprises a South London, mid terrace property worth £700,000, let to 5 separate tenants on individual assured shorthold agreements thereby coming under the impending HMO licence requirement.
The new bridging loan was at a lower rate of interest than the bridge from the current lender and lending completion fees were reduced in order to see that the client was in a better place than would otherwise have been the case.
Lerwick Financial Group helped to deliver the right solution to the delight of the client.
If any Intermediary has any clients who are in an existing bridge there are opportunities to re-bridge as long as it is to the the benefit of the borrower in terms of overall costs.