Bridging allowing time for planning
Two ambitious property construction and development entrepreneurs wished to purchase a property in Surrey which had planning permission for an extension of 4,000 sq ft. To secure the property they entered into an option agreement to allow time for them to apply for planning. The option agreement expired in April so they exchanged with a delayed completion.
A short-term loan was recommended to the clients to allow them to complete on the property sooner and sort the planning as official property owners.
The valuer visited and had nothing but good things to say about the property and its surrounding area. He didn’t think planning would be a problem and once obtained would be the best option for the property in order to optimise value.
Once they had purchased the property they wanted to apply for planning to demolish it and then rebuild what would be their dream home. The good news is that they would be keeping it within the same footprint. The clients had already arranged development finance so the bridge was required to secure only the purchase and no works would take place until the development finance is in place.
- Flexible underwriting - adverse considered on all cases
- Fixed legal costs
- No exit fees