pRE-PLANNING
Case study 2
Product: Second charge pre-planning bridge
Security: Residential investment property in West London
Gross Loan: £500,000
LTV: 71.56%
Term: 12 months
Borrower Type: Individual with minor credit issues
Purpose: The loan was used to repay the existing first charge, which had reached maturity, and fund a planning application to add a basement and second storey to the property.
Exit: Development finance
Key points:
- The planning opinion was positive and as the borrower was not particularly experienced, Pivot helped him through the process.
- The property had tenants in, so the backup exit was high street refinance if planning was not granted.
- Occupancy waivers were obtained from the tenants.
- The minor credit problems the borrower had experienced would not have a detrimental effect on his ability to repay the Pivot facility via development finance.
- When planning was granted, the borrower asked us to enter into a S106 agreement with the local council.