LendInvest, the London based buy to let finance and bridging finance platform, has provided a £563,000 bridging loan and a £1.2m development exit to help a client purchase, convert, and sell a scheme in the North West.
The experienced developer was set to purchase the property after securing finance from another lender, but was subsequently let down.
The project consisted of seeking enhanced planning and the conversion of the 12-bedroom detached property into six self-contained apartments.
The bridging loan was introduced to LendInvest by brokerage Bridge Development Property Finance, and was provided at 70% LTV.
LendInvest also lent an additional £187,000 for conversion works in order to complete the scheme, with the aggregate value of the units on completion at just under £1.9m.
Once works on the site completed during summer 2020, LendInvest provided the borrower with a £1.2m development exit loan to support it throughout the sale process in a market facing many challenges due to Covid-19.
The development exit was provided at 65% LTGDV.
Phil Mabb, director at Bridge Development Property Finance, commented: “While disappointing to have been let down so late in the transaction, fortunately we were able to take advantage of the existing valuation and legal work for the incumbent lender.
“Thereafter, we were able to progress to a successful completion, adding just a couple of weeks to the process.
“It was very encouraging that LendInvest both stepped in to save the day and took a pragmatic view in relation to the existing professional reports, thus minimising the associated costs of an aborted deal,” he added.
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The news comes after LendInvest was recently granted the highest possible rating from a European ratings agency for the sixth consecutive year.
Following a review of the company, the rating agency recognised and commended LendInvest’s handling of the pandemic crisis with specific focus on its forbearance procedures, outlining it’s satisfaction with the processes in place in preparation for the possibility of a second wave.