Bridging Finance Solutions

BFS supports Wirral housing project with £634,000 bridging loan

Bridging Finance Solutions (BFS) has provided a £634,000 bridging loan to a private developer to support the latter’s latest housebuilding project.

The developer had completed a deal to buy a large detached house in Wirral, Merseyside, with scope to build a second home on the existing grounds.

Once the deal was completed, the site was acquired by the developer’s building company.

The company entered into an agreement with the existing homeowner which would see the house demolished and rebuilt into a new home on the current site.

The homeowner will use the proceeds from the sale of the plot to fund the construction, while the bridging loan from BFS was secured to fund the purchase of the plot and the building of the second house.

“I’ve been developing property for several years now and understand the complexities and challenges that we face and so am constantly looking at new and innovative ways to ‘unlock’ deals,” said the developer.

“In several instances – as is the case here – bridging finance has undoubtedly provided the ‘key’ that has enabled us to move forward.

“This is a different way to approach development, but one that works incredibly well for both the homeowner and us.

“Essentially, the homeowner will benefit by securing a new modern, energy-efficient home on the site of his existing home, with our building company [carrying] out construction works, while our development company secures a plot on which to build a second home.”

Upon completion, the second home is expected to be valued in excess of £1m.

 “The client is an incredibly savvy and smart builder and developer who recognises and understands the versatility and flexibility of bridging,” said Steve Barber, managing director at BFS.

“We have once again worked with him to finance his latest development, which is now well underway and set for completion at the beginning of 2019.”

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