Commercial Finance Brokers (UK) (CFBUK) was approached by a group of very experienced property developers and investors who had come together to pool resources and fund a new project. They had identified a residential property they wished to purchase, refurbish and sell. The cost of refurbishment of the property was £500,000 and the Gross Development Value was £2.5m.

Crucially they’d also negotiated a very competitive purchase price which meant they needed to exchange very quickly and therefore sought bridging finance. The purchase price was £1,350,000, the clients had £950,000 in cash and so bridging was required for £400,000.

Using the available security of a first legal charge on the property being purchased, believed to be worth £1,550,000, we raised the bridging required, including servicing costs, at a competitive rate of 7.5%. We also arranged refinancing to repay the bridging loan financier within 4 weeks and provided the funds required for a further 9 months to complete the refurbishment at rate of Bank Base +4.5%.