The 18-month facility comprised an initial loan of £760,000, with a day-one LTV just shy of 65%, to enable the customer — an experienced construction company — to complete the purchase.

Three additional tranches totaling £250,000 will finance the refurbishment works, and the interest will be rolled up for the term of the loan.

The borrower secured the property at BMV after a previously agreed sale fell through.

The facility enables the borrower to complete a full refurbishment of the property, including demolishing and rebuilding the garage, overhauling the roof, updating plumbing and electrics, and full interior redecoration.

•   The Finance Professional Show 2024: The Video
•   UTB opens Manchester office to further support northern brokers
•   UTB completes £4m Brentford commercial bridge refinance

Works are expected to take up to nine months, and the exit will be the sale of the improved property, which should have an estimated GDV of £1.6m.

The loan is secured against two properties: the target property and a third-party second charge over one of the business principal’s main residence.

Gary Lomax, key account manager of bridging at UTB (pictured above), commented: “We were pleased to support the customers on this project and structure a competitive facility allowing them to transform the property, develop its full potential, and maximise their investment.

“Given their considerable expertise in construction, we are confident our customers will deliver an exceptional end product and achieve a successful and profitable sale.”