pRE-PLANNING

Case study 1

Product: First charge pre-planning bridge

Security: Mixed used building in South West London

Gross Loan: £650,000

LTV: 84.99%

Term: 12 months

Borrower Type: UK based development company

Purpose: The loan was used to fund the purchase and planning costs to allow the site to be converted from mixed use to residential.

Exit: Development finance

Key points:

An external planning opinion was sought based on the borrowers proposed scheme. The planning opinion was positive, subject to some minor amendments.
It was a condition of the loan that the recommendations of the planning opinion be followed, in order to maximise the possibility of obtaining planning permission.
As such, Pivot were happy to lend up to 85% of current value / 65% of hope value.
Evidence of development finance as exit was provided prior to completion.
Personal guarantees taken from company shareholders
Debenture taken over the company