Finanta has a network of funding streams available that range from private investors, private banks, retail and high street banks. It is our aim to provide you with a range of finance options that can take care of your individual requirements. But we also work hard to offer competitive rates and fast decisions on all finance and bridging loans.
A client approached us as he was currently defaulting on a bridge loan and needed to urgently redeem this but also raise additional funds to complete a refurbishment and development.
The borrower was a company which specialised in refurbishments and developments for onward sale of low-to medium value property. The security was a corner site, 1 half of which was partly derelict with an operational bakery on the ground floor and the 2nd half had been demolished and had finally just had the planning granted in order for a 2nd commercial unit to be built with 6 x2 bedroom apartments to be built across the upper floors of both plots.
The borrower had a CCJ from a previous business transaction but we didn't make this a reason to not fund, instead just increased the loan size to give him the required funds to clear and made it a condition of the loan to clear it.
We contacted the current lender who's loan was in default and due to our relationship with them they agreed not to proceed with legal proceedings against the borrower as they knew we would sort the refinance. Once we thought we were nearing completion, another spanner was thrown in, we found part of the security we had been offered was in fact in a SIPP fund and this particular pension fund unfortunately did not allow for loans to be secured; to not be deterred and to still ensure the borrower could release enough funds to complete the build he was happy to use the equity in his home for additional security. A last minute valuation and additional legal work but finally we completed to redeem the borrowers current loans and raise him enough to have the development built.
The refurbishment is expected to be complete within 3-6 months, once complete 4 of the flats will be sold to redeem our loan and fully complete the development of the apartments, 4 of the 6 have already been sold off plan, giving us a high level of comfort for redemption.
We were contacted on a Thursday afternoon by a broker with an urgent requirement for funding. The borrower was a company, specialising in buying and selling of properties. The security was an impressive Victorian House with a nice size plot of land towards to rear. The borrower's intention after completion was to split the land, obtain planning and then immediately sell the house, making himself a nice profit.
The deal seemed pretty straightforward at the time, however the security was located in Scotland and the borrower required 80% Loan to Value. From our extensive knowledge in the industry, we placed the deal and obtained terms within 2 hours. We supplied the lender with the required documents and the valuation was instructed the same day. To the borrowers advantage the valuer was able to inspect the property on the Saturday morning, with the report being issued on the Monday. Legal's were then instructed and after vast efforts from both sides of solicitors, the deal completed the following Friday.
A High net worth businessman approached us looking to borrow £900,000 to fund investments in new companies. He had two properties, one in Kensington valued at £8.5m and another in The Cotswolds valued at £5.5m. The deal wasn't straight forward as he had a floating charge of £6.5m across the two properties and many lenders could not get comfortable with it.
Finanta have a lender who specialises in these deals and we arranged a bridging loan for 12 months and completed the transaction with the applicant within 10 days, demonstrating our ability to work in short timeframes.
The Bridge was secured as a 2nd charge across both properties and the exit would be the sale of the property in The Cotswolds. The client was able to invest in his new business venture and the 12-month term gave him plenty of time to repay the loan.
These fast pay-outs are achievable through a limited number of private lenders who offer an efficient service and do not require full valuations. They are by no means the cheapest lenders, but rates under 1% per month are achievable, and with limited other costs.