When a property developer needed an urgent bridging loan to complete his London project, HFBS didn’t just pick up the phone—they hit the road. In a race against the clock, HFBS completed a round-trip of several hours to meet the client in person, ensuring the deal was completed on time. Their quick thinking, decisive action, and commitment to finding a solution made all the difference, delivering the funds in just five days to meet a tight deadline despite complex circumstances.
The property developer, engaged in a London-based development, had previously secured a small second charge bridging loan against his home address to finance the project. However, the development faced unexpected delays and cost overruns, leaving it incomplete and unsellable.
To complicate matters, the existing lender, who the client had been negotiating with, had initially indicated that they might offer further funding and an extension. However, just days before the loan was due for repayment on March 28th, the lender withdrew their support leaving the client scrambling to secure £85,000. The client urgently needed this sum to clear the outstanding balance and secure an additional £50,000 to complete the project.
Contacted via a broker on March 24th, HFBS acted immediately to approve the deal, send out the full offer pack, and instruct a valuation on the same day. By March 25th, they had gathered essential information from the previous lender and the first mortgagee. The valuation took place on March 26th, with the report arriving the next day.
HFBS made significant efforts to ensure the client’s paperwork was completed on time, including traveling to the client’s home in Norfolk to facilitate the signing of the legal charge on March 27th. The completed pack was returned to the office and the advance released on March 28th, meeting the lender’s deadline and avoiding costly default fees.
Dan Yendall-Collings, Senior Underwriter at HFBS, commented: “We understand things don’t always go to plan. In this case, the client had overrun on both time and budget, but the deal still made sense, so we were happy to jump in and provide an opportunity to get the whole thing completed enabling him to realise the equity and profit in the development deal. We couldn’t secure on the development project as it was owned in the name of his limited company, but we could raise him the funds as a second charge on his home address with the purpose of funds being for business use.”
A fast, efficient solution thanks to HFBS’s decisive actions and commitment to client service, the bridging loan was completed on time. The developer is now able to complete the project and realise the profit on the property’s eventual sale. The £85,000 second charge bridge following a £60,000 first mortgage against a valuation of £250,000 was offered at a rate of 1.29% over 12 months.
HFBS’s ability to respond rapidly and decisively, even in complex and time-sensitive cases, sets it apart from other bridging lenders. When faced with unexpected challenges, HFBS rises to the occasion, helping clients find a way forward.