BuildLoan and Precise have completed a £1.2m bridging loan in 11 working days, allowing a borrower to refinance a development project before an existing facility expired.
The loan was needed to repay development finance that was approaching the end of its term, helping the borrower to avoid penalty fees.
Further funding was also required to cover the final stages of the project, with the borrower planning to repay the bridge through a sale after completing the work.
The broker initially explored a conventional remortgage, but approached BuildLoan after the application was declined. At that point, there were just over two weeks remaining before the development loan expired.
BuildLoan arranged the bridging facility with partner lender Precise. It enabled the borrower to repay the existing £1.2m development loan and provided a further £100,000 for building work already completed.
With JMW Solicitors handling the legal work, the application progressed to offer in seven working days and completed four working days later.
Patrick Robertson, short-term finance specialist at BuildLoan, says: “Through our expertise of dealing with building projects and complex bridging loans, together with our relationship with Precise and JMW Solicitors, we were able to provide a solution and complete the deal in a record 11 days.
“Within 24 hours, we were able confirm, in writing, the timescale we could work to. This gave the client and adviser the confidence to proceed knowing that we could get the deal over the line before their other loan expired.”
Precise uses title insurance and a joint-representation legal structure to streamline the legal process and shorten the completion timetable.
Alan Kimber (pictured), head of bridging at Precise, says: “Where timelines are tight, it is essential to work with a lender that has individual underwriting and really understands the speed necessary for a bridging case of this kind.
“Our close partnership with BuildLoan, together with its specialist finance expertise meant that we could put together a deal quickly and efficiently despite the client’s tight timescales.”
