a) Customer wished to purchase commercial unit at £3,750,000 to sell at a significant profit approximately 3 months later. The customer did not have accounts for the business to verify that sufficient income was available to service the loan, however had a provisional contract to sell the building at £6 million. 100% of the purchase price was raised as a bridging loan at 4.5% over bank base rate, enabling the customer to complete the transaction and yield a potential profit in excess of over £2 million.
b) Customer owned a successful health club which he needed to refurbish and purchase new equipment for. The value of the property was quoted by the surveyor at £900,000. A business loan of £1.1 million was negotiated on behalf of the customer (120% of property value) to enable him to fulfil his business objective.
c) Customer had negotiated to purchase a public house at £230,000. He had approached his bank for a Commercial Mortgage loan, which they agreed to fund at a maximum £150,000. However the customer required additional funds for stamp duty, fees and working capital and therefore required a total facility of £170,000. The value of the property was quoted at £200,000 so the full sum required at £170,000 was able to be raised, being 85% of property value.
d) Customer wanted to move out of the city for a change of lifestyle and purchase a small guest house in Devon at £495,000. The business was run down, and the present owners were not able to provide financial accounts for the business to prove any of the income. The customers decided to keep their existing residential property, which they would let out. Their house was worth £250,000 and they had a £95,000 mortgage. They were able to raise the full purchase price at £495,000 plus fees and some working capital to enable the customers to realise their dream.
e) Property developer found a plot of land to purchase at £150,000 and on which he needed to spend a further £425,000 to build 5 houses. The houses were projected to take approximately 6 months to build and sell and were to be worth £195,000 each on completion. The clients had just £25,000 in cash as most of their money was tied up in other projects. A 100% of the entire cost of the development (i.e. £575,000) was provided and it was arranged for the interest to be rolled up during the project to further aid cash flow. The project was completed successfully and the customer made a profit of over £250,000 from their minimal capital outlay.
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