Manchester

HFBS provides bridge to save badly damaged property



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Holme Finance Bridging Solutions (HFBS) has provided a £100,000 loan to a client whose investment property above a commercial unit in Manchester was badly damaged by tenants.

The owner required the funds so that the property could be re-let or successfully sold.

The large semi-commercial property – which had domestic accommodation above – hit problems following an extended period of non-payment.

This forced the owner to apply to the courts for a possession order and eventual eviction.

With a legal bill of many thousands and the whole building requiring a comprehensive scheme of improvement, the client set about raising the finance only to discover that funding options were limited due to the property being semi-commercial.

To make matters worse, the now vacant property was deemed uninhabitable making it difficult to acquire a standard long-term finance solution.

Ian Broadbent, director at HFBS, said: “We were approached to provide a £100,000 facility which would cover all legal costs incurred do date, as well as the proposed improvement scheme, with enough of a buffer to ensure that the project could comfortably be completed.

“Having met with the client it was clear that she had simply had bad luck with the previous tenants, which had spiralled into a very costly situation.

“Valued in its current condition at £250,000 the valuation when [the improvement scheme is] finished came back at £400,000, providing us with sufficient confidence to approve the deal.

“Works to the property are currently progressing.”

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