A broker introduced us to a borrower who required a substantial loan to assist with the purchase of a working farm with a livery and equestrian centre and where she could also farm her pigs.
The borrower was selling a property of a similar nature and wanted to purchase ahead of sale. Such specialist properties are normally outside of UTB’s lending policy, however the wider picture revealed that the sale property had a buyer and would exchange prior to the drawdown of our loan.
The “closed” nature of the bridge, combined with the borrower’s experience and financial sophistication, allowed us to progress the application on the basis of taking a second charge on the sale property and a first on the purchase property.
Unfortunately during the application process the sale of the borrower’s property fell through, leaving the exit reliant on the borrower finding a new buyer for a property that our valuer suggested could require a two year marketing period. We worked closely with our broker and identified an alternative exit in the form of a lump sum from the borrower’s pension fund. The £1.8m bridging loan and subsequent purchase of the farm proceeded marking the completion of one of our more unusual loans.
Loan of £1.8m – 67% LTV