TAB provides £335,000 bridge against £1m London BTL property
The 24-month first charge facility was agreed at 33.5% loan-to-value (LTV).
TAB has provided a £335,000 bridging loan to a property investor, secured against a £1m buy-to-let (BTL) property in Dollis Hill, London.
The 24-month first charge facility was agreed at 33.5% loan-to-value (LTV).
It allowed the borrower to release equity from the unencumbered property without moving it onto longer-term finance.
The borrower owned eight rental properties and needed the funds to settle a court-ordered liability.
The liability followed an unsuccessful appeal against the London Borough of Barnet over an enforcement notice on another property.
That notice related to the property’s previous use as three self-contained flats.
It has since been returned to use as a single home.
Most of the loan was used to settle the resulting confiscation order.
The borrower received a net £47,000 to maintain the wider BTL portfolio.
The 24-month term gave the borrower time to manage the portfolio and refinance the bridging loan onto longer-term finance.
Justice Marima, senior underwriter at TAB, underwrote the loan.
Calum Knight (pictured), business development manager for south-eastern England at TAB, said: “This is a great example of how a bridging loan can provide a borrower with access to capital held in an unencumbered property when they need to resolve a time-sensitive financial liability.
“The property provided substantial security for the £335,000 bridge, with the resulting 33.5% LTV giving us a strong lending position.
“The 24-month term also gives the borrower the time and flexibility needed to manage the wider portfolio and refinance. And, of course, the breach was unrelated to our security property.”
Knight added: “This deal demonstrates TAB’s ability to provide bridging finance against substantial residential assets where borrowers need to release equity to address specific financial requirements. Think TAB, think bridging.”
Robert Hershaw, founder and managing director of Active Investments, said: “Our client needed to raise capital against an existing buy-to-let property to settle a court-ordered liability, while retaining enough funds to continue managing their wider portfolio.
“TAB was able to structure the facility against the £1m property at a low LTV, providing the capital required to resolve the immediate issue while leaving the client with £47,000 in net funds.
“The 24-month term also provides useful flexibility while they arrange the longer-term refinance. Once again, TAB has brought momentum to lending.”
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