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Bridging Loan Helps Business Partners Get New Venture Underway
At UK Property Finance we are always proud to be part of a small business success story. In this instance we were approached by two lifelong friends who had decided to go into business together. Both experienced tradesmen and in their mid-30s, they believed that the time had come to invest in property and in particular purchasing properties in need of renovation. This would enable them to utilize their skills in order to create maximum profit when they sell.
One of the partners owned a commercial property inherited from a deceased relative several years prior. The other partner had considerable savings, although even the combination of equity and savings was not enough to purchase a property outright and pay for the renovation work needed. The partners approached UK Property Finance for advice and based on their scenario we advised that a short-term bridging loan would be the most appropriate product for them.
The loan was secured against the first partners commercial property while the second partners savings were used for the 10% deposit required for an auction purchase and the balance to minimize the loan required and Loan to Value (LTV) so that UK Property Finance could recommend the best interest rates available in the market and also raise the money needed to complete the renovation work. The loan was finalized from start to finish within 2 weeks and the funds were transferred allowing the new business partners to take formal ownership of their first investment property well before the 28 days allowed by the auction house and as such they commenced the refurbishments earlier than expected.
We have kept in regular contact with this new fledgling business who are well on with their first development and already on the lookout for number two.