StreamBank completes £2.61m regulated bridge to support Somerset property acquisition
The 12-month facility allowed the borrower to complete the purchase without waiting for the sale of a separate property in London.
StreamBank has completed a £2.61m regulated bridging loan to fund the purchase of a neighbouring residential property in Somerset.
The 12-month facility allowed the borrower to complete the purchase without waiting for the sale of a separate property in London.
The loan was secured against the new property and the borrower’s existing Somerset home, which had a combined value of about £4.3m.
The neighbouring property was bought for £2.3m and the existing home was valued at £2m, giving an overall loan-to-value (LTV) of 61%.
The family plans to move into the larger property.
The main exit strategy was the sale of the London property, valued at about £2.5m.
The case was led by Lorenzo Satchell (pictured), national accounts director for property finance at StreamBank, and introduced by Sanjay Lalji of Coreco.
Satchell said: “This transaction shows why the assessment of a bridging case has to extend beyond a borrower’s monthly income.
“For clients with substantial wealth held through trusts, property or other assets, their financial position can be far stronger than a conventional income assessment might suggest.
“The key was understanding the strength of the borrower’s overall position and structuring the loan around a credible primary exit, with further assets providing an additional repayment route.”
Satchell added: “The adjoining property represented a rare opportunity for the family, so the value of the bridge was in giving them control over the timing of the purchase rather than forcing it to depend on another property sale completing first.”
Sanjay Lalji, mortgage adviser at Coreco, said: “Cases involving high-value properties and more complex sources of wealth depend on the broker and lender having a clear understanding of what needs to be achieved from the start.
“Being able to discuss the detail directly with the StreamBank team meant we could establish early on how the case could be structured and what would be required to get it through to completion.”
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