Bridging loan secures an excellent business opportunity
A bridging loan turned out to be the solution to securing the quick purchase of a large hotel. Time was against our client as the hotel needed to be purchased very quickly to secure the fantastic sale price that had been agreed. A bridging loan was the best option due to the short timescale in which the funds were required, and there were additional problems because the hotel was in a poor state of repair and had been closed for a number of years, meaning that there were no recent trading accounts.
To secure a quick purchase a bridging loan was raised and the sale completed without any problems. The bridging loan was later increased to provide funds for conversion work to be undertaken so that the former hotel could be turned into apartments.
Once the apartments were finished some were sold and 2 were refinanced using buy to let mortgage facilities in order to repay the bridging loan. Two apartments remain finance free and are being rented out, although there is a possibility that they could be used to secure another bridging loan shortly to fund another project.