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£5.4m Ex-pat Re-bridge in 15 days

CRYSTAL SPECIALIST FINANCE COMPLETES £5.4M EXPAT REBRIDGE IN 15 DAYS An ex-pat borrower has boosted the value of a luxury apartment in central London after completing a £5.4million re-bridge with Crystal Specialist Finance (CSF). The Monaco-based businessman required the funds to clear an existing £5m bridging loan, with the remainder paying for a substantial refurbishment of the flat. Once completed, the work should see the property’s value rise from £10m to £12.5m. As the client is an ex-pat and the asset owned by an offshore limited liability company (LLC) Crystal worked with specialist lender Together which approved the application following an offshore opinion within 15 days. Jo Breeden, Managing Director of CSF, said: “The deal was in an area of strong purchase demand. The client...

Commercial Bridging Loan

MAXIMUM NET ADVANCE, MINIMUM COST One of our brokers contacted us to help him arrange a commercial loan for a client who had been let down by a lender at the last minute. The client needed the loan to repay an investor who lent him the funds to buy six retail units at an auction. The deadline was fast approaching and failing to repay on time would have meant substantial penalties. Solution The quickest option was to arrange a bridging loan. We managed to find a lender that was willing to take a comfort charge on another property, even though this was already mortgaged to 70% LTV. The solicitors were instructed within 3 working days and the bridging loan arranged was on 4 months retained and 8 months serviced...

Bridge-to-let

COMPLETING A PRECISE 'BRIDGE'-TO-LET IN JUST 17 DAYS Crystal Specialist Finance recently finalised a Precise Mortgages’ Bridge-to-Let product case, completing the application from start-to-finish in just 17 working days. The product is designed to help landlords maximise rental yields by refurbishing the target property before they rent it out, bringing together the flexibility of bridging finance with an exit onto a long-term buy-to-let mortgage once the work has been completed. No mortgage repayments are required whilst the refurbishment works are being completed. In this instance the client initially borrowed a gross loan of £197,453 against a purchase price of £276,000 and will spend around £15,500 on a complete refit. The post-work valuation is expected to come in around £325,000 so when the work is completed...

Forward funded

REFURB TO LET Crystal utilised an 85% LTV bridge from Shawbrook Bank to ensure a property developer covered both property and build costs on his latest profitable venture. The house cost £75k, but with detailed inspection of the build schedule and a floor drawing which allowed the surveyors to estimate a final worth of circa £110k, the lender could clearly see how £57,493 towards the purchase and £7,500 for the works, despite being over its usual 75% threshold, made eminent sense. Outcome: The client completed the bridge in just four weeks, has undertaken the work and has now applied for a £82,500 buy-to-let loan, allowing him to raise capital as well.

Most difficult case in company history

NURSING HOME INCORRECTLY VALUED AS A RESIDENTIAL PROPERTY Crystal Specialist Finance (CSF) has completed “the most difficult case in company history”, securing a £1.7m mortgage on a new-start Surrey-based nursing home incorrectly valued as residential property two years’ previously. The five partners purchased the property for £2.4m in November 2016, using a £1.4m bridge based on a residential valuation. However the property was already used as a care home, while the planned new facility required a £1m update to deliver a first-class service for aging patients with acute needs. With exit required in November 2017, the partners’ broker contacted CSF who uncovered the error which ultimately downgraded the property value to £1.7m during reassessment. The existing lender proposed a further bridge to avoid imminent penalties,...