A Bridging Loan from Kuflink enables a client to secure a commercial unit
The Challenge
Kuflink was approached by a broker who had a Bridging Loan request from a Kent client.
The client is an established business partnership who was looking to purchase a commercial unit and three residential flats with a small piece of land around the development. The client required £400,000 to complete the purchase, and they needed to act quickly as another party was offering more than our client to secure the purchase.
The Solution
To complete the deal, we were able to take a 1st Charge over two properties in Coventry, as well as an Equitable Charge over a property in Gravesend. This enabled Kuflink to pay out the required funds to the client in just 16 working days. The client will be re-financing to repay the loan.
Deal Breakdown:
Funds required: £400,000
Time taken to complete: 16 working days
Loan duration: Nine months
LTV: 70%
Security: End Terraced House and Ground Floor Commercial Convenient Store with associated storage plus 3 Self-Contained Residential Flats in Coventry and a commercial premise in Gravesend.
Charge: 1st Charge over both Coventry properties and an Equitable Charge over the property in Gravesend.
90 Day Valuation: £580,000
Why our client chose Kuflink
The client chose Kuflink as we are known for our speed and, as we are local to them, we were able to establish a close relationship whilst we completed the deal.
How we helped a client get his business up and running
The Challenge
Kuflink was approached by a restauranteur, who is also a landlord with a complex Bridging Loan request. The client had bought a fish and chip shop and required funds to purchase stock, as well as refurbish the shop. Without the finance the client wouldn’t have been able to get his business up and running and the clock was ticking for him.
The Solution
The client had a buy-to-let property located in Greater London over which we were able to take a Second Charge. As there was plenty of equity in the property, we were able to provide funding for the client in just over three weeks. This enabled the client to refurbish and stock his shop and commence trading. The client’s exit strategy is to arrange long-term finance with a mainstream lender.
Deal Breakdown:
Funds required: £113,500
Time taken to complete: Just over three weeks
Loan duration: 12 months
LTV: 62%
Security: Buy-to-let three-bedroom semi-detached freehold property in Greater London
Charge: 2nd Charge
90 Day Valuation: £427,000
Why our client chose Kuflink
The client needed to get his business up and running as quickly as possible, and he knew that Kuflink’s bridging loans have provided a solution for lots of people in similar situations.
Kuflink helps a client successfully buy the commercial property he had been renting for over 20 years
The Challenge
Our client is an established businessman who has leased his ground floor clothing shop for over 20 years. He now wishes to buy the two-story freehold commercial property from which he trades in Birmingham from his landlord for £360,000.
On the second-floor there is a beauty salon who have spent a substantial amount of money renovating the salon but don’t have a lease. This couldn’t be put in place before the sale was completed as this would have alerted the tenant to the sale of the property and at that time our client didn’t own the property.
Speed was of the essence as the property hadn’t gone on the market and the vendor wanted to ensure the sale went through quickly. A further complication was that the sale was subject to Probate.
However, the client had already started to put in place long-term finance but needed to complete quickly to meet the vendor’s timescales.
The Solution
By working closely with the client and the broker we were able to overcome the numerous challenges and took a 1st Charge over the commercial property. Once the deal completed the client is arranging a lease with his tenant on the first floor and will be finalising his long-term finance to repay our loan.
Deal Breakdown:
Funds required: £252,000
Loan duration: Six months
LTV: 70%
Security: Two-storey retail shop
Charge: 1st Charge
Open Market Value: £360,000
Why our client chose Kuflink
This deal came from a new broker that we met at a recent corporate event. The broker was confident that Kuflink was flexible given the complicated nature of the deal and could meet the timescales required.
A client successfully completes an auction purchase with our help
The Challenge
The client had purchased a two-bedroom terraced property at auction in Liverpool and required funds to complete the purchase within 28 days, as she did not have the relevant finance in place to complete the purchase. Had we not provided the funds the client would have lost their deposit of £12,000.
The Solution
The client had borrowed from us previously and had successfully repaid the loan on time. For this Bridging Loan, we took a 1st Charge over the property, and were able to provide funding to the client in 10 working days. The deal was completed and funds released in time for the client to complete her auction purchase. The client will be arranging longer term finance to repay the short-term loan.
Deal Breakdown:
Funds required: £29,400
Time taken to complete: 10 working days
Loan duration: Six months
LTV: 70%
Security: Freehold property located in Liverpool
Charge: 1st Charge
90 Day Valuation: £42,500
Why our client chose Kuflink
Kuflink had previously provided finance for the client, and as she was completely satisfied with the speed in which we were able to provide the funds, the client approached us again for further funds.
How we helped a client continue trading
The Challenge
The client is a landlord with a buy-to-let property in Greater London as well as a commercial unit with accommodation above in Lincoln. The client’s bank revalued the Lincoln property and due to a reduced valuation requested the business loan of £110,000 be settled within four weeks’. We carried out a valuation of the property, but as the client occupied more than 40% of the building we couldn’t take a Legal Charge over the property.
The Solution
As the existing lender on the buy-to-let property would not give us consent to take a Legal Charge, we worked closely with the broker to re-finance the buy-to-let property in Greater London repaying the mortgage and also lent the client the funds to repay his business loan.
We were able to successfully release the required funds to the client in just over three weeks to enable him to continue trading in the shop. The client’s exit strategy is to arrange long term finance with a mainstream lender.
Deal Breakdown:
Funds required: £360,000
Time taken to complete: Just over three weeks
Loan duration: 12 months
LTV: 70%
Security: Buy-to-let property in Greater London
Charge: 1st Charge
90 Day Valuation: £480,000
Why our client chose Kuflink
The borrower needed to repay a loan to his existing lender as a matter of urgency and knew that we have a reputation of being able to turn around finance quickly.
Kuflink bridge’s the gap whilst our client waits for his long-term finance
The Challenge
Our client had recently purchased a semi-commercial property at auction, and had taken out a short-term loan with an alternative lender to complete the purchase. Unfortunately, the client’s existing lender required repayment of the loan before the broker had been able to put alternative long-term finance in place. Hence the request to borrow £155,000 whilst his long-term finance was being completed.
The Solution
As the client was already in the process of obtaining his long-term finance, we were satisfied with taking a 1st Charge over the property and repaying his existing loan. We agreed a term of six months, to allow the client sufficient time to finalise his long-term finance solution. As a gesture of good-will we waived his exit fees, enabling the client to repay his loan early without additional cost.
Deal Breakdown:
Funds required: £155,000
Loan duration: Six months
LTV: 53%
Security: Freehold semi-commercial property consisting of two retail shops on the ground floor with a large three-bedroom flat on the first floor in Maidstone.
Charge: 1st Charge
90 Day Valuation: £290,000
Why our client chose Kuflink
The broker introduced the client to Kuflink as he has a good relationship with us.
Kuflink helps clients purchase a new investment property at auction
The Challenge
Our clients are established business people who are experienced in purchasing, renovating and renting properties. The clients were purchasing a leasehold house at auction in Bristol for £168,000 and required £77,000 to complete the purchase. As the property only had 43 years left on the lease, we were only able to obtain a cash valuation of £110,000 for the property. In addition, some renovation work is required. Similar properties in the area with a longer lease or freehold were being sold for circa £230,000 (August 2017).
The Solution
As we were only able to obtain a cash valuation on the property being purchased, in addition to the 1st Legal Charge we took over the property, we took an Equitable Charge over another investment property the clients owned worth some £230,000, with an outstanding mortgage of £116,000. This allowed us to help the clients and release the funds in 19 working days to complete the purchase of the auction property.
The client will be refinancing by selling the investment property we have taken an Equitable Charge over.
Deal Breakdown:
Funds required: £77,000
Time taken to complete: 19 working days
Loan duration: Six months
LTV: 57% of cash valuation and Equitable Charge on a second investment property
Security: 1st Charge on leasehold house in Bristol and Equitable Charge on a second investment property in Bristol
Charge: 1st Charge and Equitable Charge
Property Valuation: £110,000 (cash value) and £230,000
Why our client chose Kuflink
This was a deal from a broker we met in June 2017 at a corporate event who had been impressed by our responses to previous enquiries. Additionally, the broker was confident that we could complete the deal in the required timescale.
We help a businessman expand his investment portfolio
The Challenge
Our client is an established businessman looking to expand his buy-to-let portfolio. He is a first-time buyer from auction, and has purchased a semi-commercial property in Greater London which has tenanted accommodation above. The client required £307,500 in order to complete their auction purchase. However, the valuation report came back lower than initially expected, and had we lent against this security only, it would have been at an LTV in excess of 70%.
The Solution
As the client had another buy-to-let property in East London with an open market valuation of £2,200,000 with outstanding mortgage of £447,000, we took an Equitable Charge over this to enable us to complete the deal in just 12 days. In the longer term the client will be refinancing through a mainstream lender on a commercial mortgage, to repay his Bridging loan.
Deal Breakdown:
Funds required: £307,500
Time taken to complete: 12 working days
Loan duration: Three months
LTV: 20% of Open Market Valuation
Security: Semi-commercial property in Greater London and buy-to-let property in East London
Charge: 1st Charge and Equitable Charge
Open Market Valuations: £410,000 and £2,200,000
Why our client chose Kuflink
The introducer knows Kuflink well and is aware of the fact we are willing to be flexible and go the extra mile to help our clients.
A client increases their investment portfolio with a loan of £400,000
The Challenge
Our client has a portfolio of investment properties and required £400,000 to complete the purchase of a further four-bedroom residential investment property in Slough requiring renovation. Once the renovations are complete the client will be renting out the property.
The Solution
As the property was unencumbered we were able to take a 1st Legal Charge over the property, and agreed a loan for 12 months, allowing the client time to complete the renovations, rent out the property. The client’s exit strategy is to obtain long-term finance from a mainstream lender.
Deal Breakdown:
Funds required: £4000,000
Time taken to complete: 21 working days
Loan duration: 12 months
LTV: 52%
Security: Four-bedroom residential property in Slough
Charge: 1st Charge
90 Day Valuation: £760,000
Why our client chose Kuflink
The client approached Kuflink as they knew us and were confident that we would be able to provide the finance in time.
