Castlehill Capital were tasked with one of their trickiest bridging loan requests this month. We were asked to refinance an existing 2nd charge bridge loan for an 80 year old client with the only security being his primary residence.
The double fronted property in Battersea was in a great location and had various planning consents for further development. However, the client who is a builder by trade, had used the property as security for 2 previous bridging loans.
It was Castlehill’s job to untangle this legacy debt and enable the client to to move on with his life.
The property had an existing 2nd charge loan with BridgeCrowd which was now in default. The loan had been used for business purposes (purchase and renovation of another investment property) therefore the loan was unregulated. Nonetheless, it was still a tricky proposition for much lenders as the client’s age was 80 and therefore didn’t qualify for any standard mortgage products.
The client’s requirement was to pay off the existing bridge loan facility and provide enough time for him to sell the property.
He had been turned down every lender he had approached. However, Castlehill understood his position and were confident that he only needed a little breathing space in order to get the property sold and the loans repaid.
Castlehill matched the client with one of their private investors (who coincidently was local to the area). The investor was understanding of the borrower’s situation with regard the initial bridge loan and also the local market.
A facility of £600k was agreed to pay off the initial bridging loan and a term of 9 months provided for the borrower to sell his property.
Castlehill Capital and their private equity investors are now well established principal lenders in the non-standard short term property lending sector.