Specialist lender StreamBank has completed a £1.5 million bridging loan for an experienced property investor buying a £3 million regional shopping centre in Peterlee, County Durham.
The 12-month bridging loan released equity from a residential property in Ashbourne, Derbyshire, giving the borrower the extra capital to complete the purchase. Commercial finance already covered most of the acquisition, but a funding shortfall had to be met within tight transaction timescales.
StreamBank took a first legal charge over a Grade II listed period residence with multiple holiday-let units, additional land and ancillary accommodation. The property had an open market value of £3.75 million, giving an LTV of 44%. The lender advanced £1.5 million net, on a gross facility of about £1.65 million.
Three points on the security needed work:
- Multiple titles covered the property.
- Its Grade II listed status required additional legal review.
- EPC certificates needed updating after completion.
StreamBank described the borrower as an experienced investor with a substantial portfolio and strong credit profile. The exit relies on refinancing the residential security alongside releasing equity from the borrower’s wider portfolio.
“Complex security doesn’t necessarily mean a weak lending proposition,” said Aiman Maklad, business development manager for London and the south at StreamBank (pictured).
“There were several points here that needed closer assessment, from the Grade II listed status
and multiple titles through to an exit that relied on refinancing and equity elsewhere in the portfolio. The important thing was understanding whether those points created risks that could be managed, rather than treating them as reasons not to lend.
“The client was an experienced investor with substantial equity, a strong credit profile and more than one credible route to repayment. That gave us a good base from which to structure the facility. It also shows where bridging can be particularly useful – not simply funding a purchase directly, but releasing capital from one part of a portfolio to make another transaction possible within a fixed timeframe.”
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