case studies for property bridging loans

Auction Purchase

Mr L successfully bid for a property at auction which he wished to purchase as an investment property. One of the conditions was that Mr L had to complete within 28 days otherwise he would lose his deposit.

Mr L had intended to arrange a buy to let mortgage with his bank but they would have struggled to complete the loan within the timescale needed and Mr L did not wish to lose his deposit.

A property bridging loan was therefore arranged and completion was possible within 10 working days of the application. Mr L was then able to re-mortgage, with the buy to let mortgage redeeming the property bridging loan.

Discounted Purchase

Miss F had been wishing to purchase a new build property and was offered to purchase the last plot on a new development at a discounted price on the basis that the sale completed within 21 days. In addition Miss F had no deposit available. The timescale made it extremely difficult to arrange a mortgage and most lenders would only lend against the purchase price and not the true value of the property, so the option of obtaining a mortgage to complete was ruled out.

Miss F needed a lender that would advance the funds within 21 days against the value of the property. A Property Bridging Loan was arranged and the monies paid out in under 10 working days. Furthermore, the lender was able to lend the entire purchase price as they were happy to use the true valuation of the property, not just the discounted price. Miss F was then able to arrange a re-mortgage to redeem the property bridging loan.

Capital Raising

Mr J had received a final demand for a tax bill and required the monies within 1 week. He owned several investment properties which he planned to re-mortgage in order to release the monies required, however, time was against him. A Property Bridging Loan was arranged and completion took place within the 7 days time limit. Mr J was then able to re-mortgage his properties as planned in order to redeem the Property Bridging Finance.

The above case studies are based on real people, but their names have been changed to protect identity. All case studies have been provided by Thinc Group Ltd Ltd, which is authorised and regulated by the Financial Services Authority.

All loans are subject to status and valuation. Written quotations available on request. Advice will be provided by Thinc Group Ltd Ltd.

Think carefully about securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other debts secured against it. Not all types of loan are regulated by the Financial Services Authority.

These are for illustrative purposes only and must not be used as financial advice. For further information, and to see how we can help you, please contact thisisjam.com.