Sam Beaumont, Advisor at Arc & Co., has secured a property developer client with a £637,000 bridging loan.
The bridging loan is being used to repay the existing loan on the property, located in Acton in London, while the borrower anticipates planning permission for its development to be granted.
Because the borrower only needs the bridging loan for a short period, a stepped rate option is the most suitable solution. At the required 70% LTV, the loan is priced at 0.55% for the first six months, and 1.15% for the remaining six months.
Sam commented:
“It was a pleasure working with our client to secure this loan, especially considering that the planning process in the UK can be slow and protracted, meaning developers can sit on sites for ages waiting for permission for development or conversion to be granted. Hence the bridging finance required in this case.
“In this case, the lender took a helpfully pragmatic approach , meaning things got done quickly and the process was straight forward.”
As the current market continues to stabilise, Arc & Co. continues to access competitive refinancing options for clients seeking access a better interest rate or release equity to fund their next property project.