- 15th March 2022
- Posted by: DMM
- Category: Bridge Finance
We are delighted to have now completed a great example of the benefits of bridge funding in Devon. Our client owned a former foreign language school for which he achieved planning consent to convert it to three, two-bedroom flats. This former Victorian villa is situated in the centre of Exeter in Devon and just a short walk to the city centre.
In addition, the developer agreed to buy two further properties, with one to be converted back to single dwelling, and the other to two flats whilst retaining an existing clinic. These Georgian properties have Palladian elevations and are also very close to the town centre meaning demand for them will be high.
Our client was seeking bridge funding to acquire the additional properties and complete the residential conversion of each one. The developer will refinance the properties upon completion of the works and refinance them into his existing portfolio. The developer had good experience with a number of other completed projects on his track record.
Bridge funding is a means to raise funding quickly and can give you an edge in acquiring a new opportunity. Typical examples of bridge funding in Devon might be for auction purchases or buying sites without planning.
In this example of bridge funding in Devon, the gross loan amount was £532,500 with one month’s interest being retained and serviced thereafter. Retained interest means that the lender takes their interest on Day 1 from the gross loan amount with the remaining interest being taken monthly. The lender provided a loan to value at 75% with their security being a first charge on each property.
Bridge funding is a means to raise funding quickly and can give you an edge in acquiring a land opportunity. Typical examples of bridge funding in Devon might be for auction purchases, buying sites without planning or for refurbishment opportunities.
Bridge loans of up to 80% loan to value are possible with rates for lower leverage starting from around 0.49% per month.
Specialists in Bridge Funding in Devon
If you are seeking bridge funding in Devon, then contact us today to discuss your requirements. Developer Money Market is a specialist in property development and bridge funding. We have a panel of more than 120 lenders together providing over 320 loan products.