Situation: Property developer capital raising for refurbishment.
A property developer needed our help to raise the capital required to buy and carry out refurbishment on a property which would ultimately be let out.
The property in its current state was worth circa £75,000 with an average maximum loan to value (LTV) of 75%. The customer, however, needed more capital to be able to successfully complete the work required and approached us for a solution.
Solution offered by Crystal Bridging Loans:
We approached one of the lenders on our exhaustive panel. Our reputation and strong relationship with lenders meant that they were open to looking at a case which was slightly outside their normal criteria and threshold of lending.
Following a detailed inspection of the building schedule and floor drawings, the surveyors estimated the final value of the property to be at £110,000. We put a case together to demonstrate this and made an application to the lender.
The lender agreed that increasing LTV up to 85% made sense in this case. Through securing extra borrowing for our client, we were able to help them refurbish their property to the desired standards.