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Investment Property Loan Case Studies
Here are some examples of both actual loans completed in the past by Commercial Acceptances and common bridging scenarios demonstrating how we can help with your short term borrowing.
- Bridging loans for property developers
- Bridging loans for property speculators
- Bridging loan within 24 hours
- Owner occupier bridging loan
- Fast bridging loans for property traders
- Second charge bridging loan
- Capital rasing
- Bridging loan to buy property at property auctions
- Bridging loan for investment buy to let properties
- Discount purchase bridging loans
Bridging loan for property developers
A budding property developer, whose children had left home, planned to convert her own house into flats. She obtained planning permission for the conversion but, due to her lack of experience in property development, was unable to arrange property finance.
She approached us and we were impressed with her drive and the professional way in which she had set about the task.
We agreed to fund the project with a bridging loan and the conversion was completed on budget and on time. The flats were sold the moment they were put on the market.
Bridging loan for property speculators
A new client recently approached us because he wanted to acquire a vacant public house in South London with the intention of obtaining planning consent for residential conversion. Due to the absence of existing residential planning consent he had been unable to arrange funding elsewhere.
We shared his views on the likelihood of planning being granted for the scheme and agreed to help him purchase the property.
Some three months after completion of the purchase, he secured planning consent for residential development and the property was sold quickly and profitably.
Bridging loan within 24 hours
A new client contacted us at 10 o'clock on a Thursday morning. He was acquiring a property in Docklands for around £1 million.
Unfortunately his mortgage lender let him down the day before his notice expired, because the property had dual commercial and residential use.
We valued the property on the same day, made all the usual pre-contract enquiries and executed the legal documents within 24 hours, allowing the purchase to be completed within the deadline.
Had we not performed on time, and completed the bridging loan, our borrower would have lost a substantial deposit and could have been sued by the vendor.
Owner occupier bridging loan
A broker represented a client who was experiencing delay in selling his home. This threatened his ability to move.
The borrower required a bridging loan equivalent to 100% of the purchase price.
Fortunately, he had a relatively modest loan secured against his existing property, so we proposed a combination of a second charge on his existing house and a first charge on the new home. We made the funds available and the bridging loan was quickly repaid when he subsequently sold his old home. This was a regulated mortgage contract, so if you are interested in a loan that will be secured against a residential or semi commercial property of which more than 40% is occupied or will be occupied by you or any immediate member of your family, please click on the Regulated Bridging Loans link.
Fast bridging loan for property traders
A long standing client regularly uses us to help acquire properties at competitive prices, either through property auction or private treaty for immediate onward sale.
He likes the speed and simplicity of our bridging loan service, the absence of arrangement and redemption fees and the fact that we do not impose minimum periods.
Second charge bridging loan
We can also provide bridging loans on Second Charges, meaning that we can lend even if the borrower has an existing mortgage.
Our borrowers had agreed to purchase a property in France to spend their retirement abroad. Their home in London had sufficient equity in having taken their existing mortgage into account. We arranged a four-month bridging loan (investment property loan) secured by way of second charge to assist with the purchase of the property in France. Our loan was repaid when their London property was sold.
Capital Raising
We received a call from an applicant wishing to raise funds quickly to inject capital into his business. He owned his own commercial premises and was in the progress remortgage to raise additional funds. This process was taking longer than anticipated so he completed a bridging loan within a matter of days which repaid the existing loan and provided the additional funds he needed. Our bridging loan was repaid in a matter of weeks when he completed on his long term mortgage.
Bridging loan to buy property at property auctions
Commercial Acceptances Ltd are experts in providing bridging loans for Property Auctions. We recently concluded a loan on an Auction lot to a customer, who had successfully bid for a commercial property at auction in London. His conventional lender was unable to provide the finance for completion in time. The customer would have forfeited his deposit but we lent £600,000, completing within 3 days. Therefore our quick bridging loan saved him his deposit and enabled him to refinance at leisure.
Bridging loan to break mortgage chains
Often a series of transactions are stalled because one party is suffering delays obtaining a mortgage or completion dates are non-coincidental. Our short term bridging loan is ideal for this purpose and has saved many fraught situations. If you are offering a first charge over residential property or a semi commercial property, of which more than 40% is occupied or will be occupied by you or any immediate member or your family, please click on the Regulated Bridging Loans link.
Bridging loan for investment buy to let properties
Often borrowers wishing to enter the buy-to-let business are frustrated by the requirements of the long term lenders. Using our bridging loans, they are able to complete quickly on the purchase, install tenants, and refinance at leisure. Our bridging loans allow investors to buy derelict unmortgageable properties, which they then refurbish before letting the property and securing long term finance. The value of the property will inevitably have increased once the works are complete so this will allow the investor to maximize the amount of the long term funding available. This often means that investors are able to reclaim their original capital investment allowing them to buy another property.
Discount purchase bridging loan
Having a secure and quick source of bridging loans enables borrowers to negotiate cash discounts when purchasing properties where the vendors are looking for rapid completion.
