Ying Tan

Dynamo helps secure £1m bridging loan for auction purchase

Dynamo recently helped a family-run property development business secure a bridging loan of £1.025m for the acquisition and development of an auction lot.

The developer had been made aware of an auction lot which had scope for 6-8 flats with a GDV of £2.25m.

They won the auction at a value of £800,000 before approaching Dynamo to help them secure finance as their funds were tied up in two other development projects.

The client was also trying to sell a property it owned outright before lockdown hit.

Sy Nathan, senior mortgage consultant at Dynamo, reached out to Nick Warren, BDM at United Trust Bank, to help structure the deal. 

Nick got terms out to the client the same day, despite being in the midst of lockdown.

A loan of £1.025m was agreed at 0.48% for 12 months with a LTV of under 50%, which was used for acquiring the auction lot and the planned development work. 

The 12-month term also gives the client enough time to sell their property. 

“One of the biggest challenges we faced concerned the value of the residential property they were selling, as the clients had carried out extensive works, including the addition of a sauna and both an indoor and outdoor pool,” said Sy.

“Valuation was undertaken by Alexander Lyons Ltd as soon as physical valuations became possible, and a valuation report was sent to UTB. 

“The property came in as expected at £2.5m.” 
Ying Tan, founder and chief executive of Dynamo (pictured above), added: “We are seeing an increasing number of our professional landlord clients releasing equity from their portfolios in order to capitalise on current market conditions, particularly in light of the chancellor’s recent stamp duty announcement. 

“When speed is all important, it’s fantastic to work with a lender as flexible and dependable as UTB which shares our passion for first-class customer service.”

Nick Warren, BDM at United Trust Bank, commented: “It was a pleasure working with Sy on this recent transaction. 

“We were in regular contact throughout the process to ensure the deal completed as quickly as possible, making the funds available for the auction purchase. 

“Despite the additional challenges created by Covid-19, we were able to find a valuer to undertake the inspection within a few days of the application and we worked together with Dynamo to meet the customer’s requirements.”

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