Bridging deals of the week

Bridging deals of the week



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This week, B&C wanted to highlight to our readers the details of a deal which involves a broker using Simple Bridging Limited for the first time… .

 

This week, B&C wanted to highlight to our readers the details of a deal which involves a broker using Simple Bridging Limited for the first time…

Simple Bridging was formed in May 2011 to offer brokers and introducers access to private bridging funds for commercial and residential investment properties.

Describing the initial contact made and details of their client’s needs, David Winter of Corporate Finance Associates, explained: “I first came across Simple Bridging via an article on the Bridging & Commercial website and it just coincided with a specific enquiry from one of our introducers that I thought could fit their criteria, namely that they were willing to lend against market value even if the purchase price was in the applicant’s favour.

“Our client had a site that required an element of clearance before it was to be sold to a care home operator to develop for their own purposes. Planning consent was already in place and the sale price had already been agreed and contracts drawn up for an early completion. Simple Bridging were able to act speedily to get an earlier valuation report redirected and advanced enough to buy the site outright and an amount towards the expenses involved in the site clearance, so overall they actually advanced over the purchase price as the valuation was strong enough to allow them to do so.

“The case was handled with a minimal amount of fuss and it completed on time and met the client’s expectations, so I would highly recommend Simple Bridging for doing what a lot of other bridging lenders would not even consider.

The loan amount given to the client was for £182,000 against security worth £375,000. The actual purchase price for the site was £150,000 and the client took the term on for three months.

Simple Bridging’s funds covered the purchase price, demolition costs and all fees.

B&C heard from the Head of Business Development at Simple Bridging Limited, who commented: “When David contacted us with his enquiry, I discussed the deal at length with him. Whilst this was purely a closed deal and falls outside of our criteria, a key factor in our lending decisions on all deals are based on the exit route. In this instance, the exit route was with a blue chip care home company who wanted to purchase the site and build out themselves. We did some due diligence on the care home to satisfy ourselves of their ‘worth’ and as satisfactory evidence of their intention to purchase the site was provided from the outset, I was reassured that a firm exit route was in place and we were more than happy to proceed with the deal.

“David used our online application form for speed and we issued the terms by email to him, which he quickly returned to us and a retype of an existing valuation report was obtained. The deal was turned around from enquiry stage through to completion within three weeks.

“As we are privately funded, we have the ability to be more commercial with our lending decisions providing a strong exit route is in place. We are also now one of the few lenders to lend in Northern Ireland resulting in no post code restrictions throughout the UK.”

 

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