Simon Das

978 Bridging arranges 100 per cent funding for non-status borrower




978 Bridging has arranged funding for a distressed asset in Wavertree, Liverpool.

The semi-commercial property consists of a licensed 15-bed HMO and some ground-floor office space.

Poor management of the property had left it vacant and falling into a state of disrepair. 

The proposed purchaser for the property had experience in business, however had recently fallen on hard times.

The client had lost a business due to flooding which had resulted in dramatic financial loss as the insurance company did not pay out properly and was also the victim of identity theft.

Due to the combination of these factors, the purchaser was said to have had a terrible credit rating and a poor credit history.

978 Bridging was able to build a strong case to present to its chosen lender and found a suitable solution for all parties involved by becoming familiar with the vendor’s situation and the purchaser.

The bridging broker specialises in the financing of below market value (BMV) property and managed to arrange 100% of funding plus £8,480 to help towards the legal fees and associated costs.  

Full details:

  • open market value as of September 2018: £800,000 (Red Book RICS valuation)
  • suggested value with cosmetic improvements and once tenanted: £950,000
  • purchase price negotiated by sister company 978 Investment: £500,000 
  • finance package secured by 978 Bridging for non-status borrower 
  • bridge for acquisition: 70% LTV of open market value 
  • £560,000 gross loan 
  • less six months interest at 1.2%pcm: £40,320 
  • less arrangement fee 2%: £11,200 
  • net loan £508,480
     

Simon Das, managing director at 978 Bridging (pictured above), said: “The proud purchaser is now working hard to get the building up to standard and has had offers [from] corporate entities who wish to rent all 15 furnished rooms. 

“We are now supporting the purchaser to arrange a commercial term mortgage as the exit from a bridge.

“This was a tricky deal which took a long time to complete, but with tenacity and creativity we got a great result for all involved.”

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