https://www.thelandsite.co.uk/files/articles/7160203de38711e992280afeec538f48/963813-cool-london-bridge-wallpaper-1920x1080-for-desktop.jpg 271

A case study : The merits of bridging finance

Published by Krios Capital Partners on 2nd January 2020 -

title

One of the recent deals Krios Capital Partners worked can be used as a case study to demonstrate the merits of bridging finance.

The situation:

Our client approached us with respect to the funding of a ground-up development in South London.

He had already exchanged and was due to complete the purchase of the site within 30 days.

We approached one of the development finance lenders who was keen to fund this scheme.

Half-way through the process, the surveyor downvalued the GDV of the proposed scheme leaving the client with an unexpected cash shortfall.

Unfortunately, the client had no additional cash in hand to contribute. He was running the risk of loosing his deposit and, more importantly, the deal.

The solution:

The client had three investment properties in London.

All of them unencumbered and rented out.

Due to the tight timetable, it was decided the best solution would be to arrange a bridging loan secured against these properties.

Serviced interest to maximise the net advance on day 1.

Proceeds were released to the client in 7 days allowing him to top-up the equity required to complete the development finance loan and buy the site.

Key take-away:

A bridging loan can be a very handy financial solution to plug an urgent funding gap.

Bridging finance enables a borrower to unlock the equity currently embedded within a property and fund a new purchase or ongoing working capital.

Completion (subject to the quality of the security & profile of the borrower) can happen in less than a week.

In case you have a bridging finance or development finance requirement, please get in touch with us today.


Guelane Mansour

Property finance broker specialised in the sourcing of development and bridging finance for property developers and investors.

Link to Krios Capital Partners business profile

Recent Insights

Want to contribute? If you have any useful information about this industry please contact us and we’ll publish it.

15th January 2020
Invested in a large plot of land?

It's not so long ago when homes were built on some very generous plots. Here we've looked at the options you might explore if you're wondering how to maximise your investment.

Read more
6th January 2020
Winter Interior Predicted Trends for 2020

It’s the beginning of the new year which means one thing, trends for 2020 are a hot topic. We’ve looked at what the interior trends will be for 2020 and we couldn’t wait to share them with you.

Read more
3rd January 2020
The year ahead: seven predictions for commercial property in 2020

Knight Frank's Commercial Research team give their insight into market trends for the year ahead.

Read more

This site uses some unobtrusive cookies to store information on your computer. By using our site you accept our Terms And Conditions and Privacy Policy.

×