Holme Finance Bridging Solutions' Dan Yendall-Collings has lifted the lid on how the business came to the rescue of a developer who faced a disastrous conclusion to a property conversion.
The businessman had the very real prospect of losing out massively as the completion date loomed with the building work still unfinished.
And as time ticked away the developer turned to Holme Finance Bridging Solutions (HFBS) to save the day thanks to a first charge bridging loan for £68,000.
The loan was required to purchase a three-bed semi-detached house that had been converted into two flats. In a derelict state it was ripe as a development project to bring it back to a habitable state and profitable investment.
Contracts were exchanged with a delayed completion date set at six months allowing the renovation to begin in earnest to make the property habitable and therefore mortgageable.
Yendall-Collings, who is the senior underwriter at Holme Finance Bridging Solutions, explained that contracts were exchanged with a delayed completion date set at six months allowing the renovation to begin in earnest to make the property habitable and therefore mortgageable. He added:
“In theory the delayed completion date would have enabled complete renovation works at which time upon completion a traditional mortgage route could be explored.
"However, with several unexpected problems and delays, the six-month period passed quickly. With the properties not quite completed, and the completion date looming, the developer’s broker approached us for a bridging loan."
Just days away from not being able to meet his commitment, and potentially giving the vender back two fully-renovated flats for nothing, HFBS provided a £68,000 bridging loan against a valuation of £137,500 within seven days.
This enabled the developer to complete on the purchase as agreed and organise refinance once he had secured tenants for both units.
Yendall-Collings says that the quick and easy process illustrates perfectly the efficiency of how the experts at Holme Finance Bridging Solutions conduct the company's business.
And with an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, he says it proves HFBS really "mean business".
"HFBS offer one the lowest second mortgage rates in the bridging finance market starting at just 0.95 per cent month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for more than 15 years with complete authority on their lending. Simpler, quicker, cheaper."