TAB has completed a six-month bridging facility in six days to refinance a refurbished property in Hitchin and release capital for further acquisitions.
The borrower purchased the two-bedroom terraced property for £270,000 in January before carrying out around £41,000 of refurbishment works.
These included damp treatment, plumbing, electrical works, plastering and redecoration, with the property subsequently valued at £364,000 and marketed for £375,000.
The refinance repaid existing borrowing secured against the property, with additional funds released towards deposits for further property purchases, including potential auction acquisitions.
SALE PROVIDES EXIT
The proposed exit is through the sale of the Hitchin property. An offer of £360,000 has already been received and declined, with further viewings taking place while the borrower considers a potential revised offer.
TAB took a first legal charge over the property alongside a second equitable charge over the borrower’s main residence in Gerrards Cross, which has a market value of more than £1m.
The lender also assessed the borrower’s wider property interests, existing borrowing and source of funds used for the original acquisition and refurbishment.
Sophie Meller (main picture, inset), senior BDM for London at TAB, says: “We were comfortable with the quality of the refurbished property, the underlying equity and the strength of the exit strategy. The existing offer and continued viewings also gave us confidence that the property can be sold within the agreed term.
‘BROUGHT MOMENTUM TO THE CASE’
“While this was a straightforward lending proposition in principle, the wider circumstances required a detailed assessment of the borrower, the security and the proposed exit. We completed that assessment, brought momentum to the case and arranged the facility within six days.”
The enquiry was handled by Yohann Ifrah, manager of TAB’s business development executive team, with Waheeb Husaini handling the underwriting.
Omar Azami, partner at Ploutos Associates, who introduced the deal, says: “Polite, quick and efficient, the TAB team worked together to complete the transaction in just six days.
“They worked as a cohesive unit throughout and gave us the confidence we needed to get the deal completed. Think TAB, think certainty.”
