Clever Lending, a specialist finance packager and master broker, has announced its successful packaging of a £180,000 regulated bridging facility for clients looking to develop their residential outbuildings into holiday lets.
The residential property in question, which was unencumbered and valued at £2m, presented the clients with the aim to split the title post-development. Their plan also included separating a three-bedroom detached bungalow located on the property, which would be remortgaged as part of the exit strategy.
Recognising the intricacies of the case, Matthew Dilks (pictured), a commercial and bridging specialist at Clever Lending, opted for West One Loans, citing it as the only regulated lender open to commercial and residential mixed-use security. The choice was crucial given the clients’ need for a quick loan completion.
The process was not without its challenges. Delays were incurred during the valuation phase due to an on-site equestrian facility and strawberry cultivation, which necessitated a specialised land valuation. However, West One Loans chose not to alter the valuation fee, thus sparing the clients any additional costs.
Further complications arose when the Bank of England raised the base rate, triggering an increase in the lender’s rate from 0.95% to 1%. To offset the impact, West One Loans adjusted the gross loan amount to ensure the clients received their initially required net loan sum.
Despite these hurdles, the loan case was successfully closed within two months, by 21st June, with a loan-to-value (LTV) of 15% and a tenure of 12 months.
Dilks said: “This case highlights the many benefits of dealing with a master broker. We were able to use our considerable market expertise to find a lender willing to accept the complex, mixed-use security required for a regulated bridging loan. Clever Lending is known for getting difficult cases over the line, and this was no exception.”
Jez Quinn, head of sales (North) at West One Loans, added: “It’s always a pleasure to work with the team at Clever Lending and I’m delighted we could support their client with this transaction. I look forward to collaborating on their next deal.”
