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Crystal Specialist Finance and Together complete six-day bridging loan for inheritance tax bill

Tuesday 25 Jul 2017

Crystal Specialist Finance (CSF) has completed a £600k bridging loan with Together in just six days, allowing the applicants to pay an inheritance tax bill to access a £5m property portfolio from their deceased father.

The customers, three sisters, had applied for a longer-term facility from their introducing broker, but due to the tight timescales, they needed to access funding fast to bridge the gap.

Their broker turned to CSF which approached short-term finance provider Together, knowing their track record of delivering against tight deadlines.

After reviewing the case the lender agreed to provide the funds needed, with the exit strategy being to refinance for the longer-term. The deal was secured against four flats on one title, valued at £1.8m, with both legal and valuations instructed straight away ensuring quick completion.

Jo Breeden, CSF Managing Director, said: “This is a fantastic example of how bridging finance is adapting to meet varied market demands, and how the right distributor and lender can move extremely quickly to meet the best interests of the applicant in terms of loan size, term and exit strategy.”

Marc Goldberg, commercial CEO at Together added: “Bridging finance can serve a wide variety of purposes and in this case, ensured the customers’ inheritance whilst the longer-term facility is put in place. Crystal Specialist Finance know they can trust us to deliver in situations like this, where time is of the essence, and worked closely with our team at Together to provide the best outcome for the customer.”

Jo Breeden talks to FTAdviser about uptaking development market

Tuesday 11 Jul 2017

Crystal Specialist Finance (CSF) has seen a ‘massive increase’ in demand for development finance as property investors go in search of higher yields.

CSF announced plans to tap into the growing property development finance sector - covering new build projects, redevelopments, major renovation works and general refurbishments - in April this year.

The sector has seen rapid growth in recent years, with lenders increasing annual development lending by more than 140 per cent between 2012 and 2014, according to a review of the sector by the Investment Property Forum.

CSF managing director Jo Breeden told FTAdviser the move had paid off, as the cooling buy-to-let market has served to push investors into more niche areas of the market.

“It is definitely a great decision we have made, and over the next 12 months we will be making sure the department is ahead of the game,” he said.

“We have already made one key appointment and will have another two starters by the end of the month [June] just to keep up with demand. We have seen a massive increase.

“It is definitely the way the market has moved and will continue to move while there is a shortage of housing and a restriction of traditional investment.”

Mr Breeden warned brokers could be missing out on business by failing to engage with the burgeoning sector.

“Development finance and refurb - people should not be discarding these, and we can help with their knowledge base and an education piece,” he said. “Brokers have to look at diversifying and looking at opportunities.”

While many indicators point to a housing market languishing in the doldrums, changes to mainstream lending have led to growth in more niche sectors.

So far this year, the company has recruited eight new joiners to meet the increased demand for new business.

CSF has also benefited from an increase in limited company applications following tougher regulations on the buy-to-let market, as the company has been dealing with such applications for decades.