Funding a new property after divorce

Discover how we helped our client secure a loan to cover the purchase of a new home before the sale of their existing residence.

£700,000 Loan for New Home

Our client was looking to purchase a new home with a value of £1.85 million. He needed a loan worth £700,000 to put towards the purchase of the property, with the remaining cost to be paid through a variety of other income channels including savings and investments.

The client’s existing home had a value of approximately £2.35 million and was previously the matrimonial house for him and his ex-spouse. This home had borrowing and charges against it which reduced the overall equity to about £1.27 million, and it was due to be sold when the client’s ex-wife moved into her own property.

This existing home was expected to sell quickly and, together with the lender, the client agreed that the money generated from that sale would go straight to the lender to pay off the loan. The lender did not want a charge against this property as security for the loan due to the complexity of agreeing this deal with both the client and his ex-spouse.

A loan of £700,000 was agreed on a 12-month term with 0.9% per month of retained interest.

Overview of Case Study

  • Loan: £700k (790k Gross)
  • Term: 12 months retained interest
  • Rate: 0.9%pm
  • Lender Fee: 2%
  • Exit Fee: Nil
  • Security: 1st legal charge over client’s new property

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    Helping a client meet an auction deadline

    See how our team secured a regulated bridging finance loan, working quickly to ensure the client met their auction purchase deadline.

    Regulated Bridging Finance for Property Auction

    We were approached by a broker with a client looking to purchase an auction property with a strict deadline. The client had an existing home in Leicestershire but were looking to relocate and had not yet found a buyer for their current property, which meant they did not have sufficient funds to purchase the new property she had fallen in love with immediately.

    Our client exchanged with a 10% deposit on the property, which had a total purchase price of £325,000. The auction house set a 28-day completion deadline, so we immediately set to work identifying possible solutions that could help our client cover the full cost.

    Using our regulated panel access, which provided us with exclusive products on the financial market, we found a lender who could offer a quick underwriting process and an automated valuation.

    We organised a loan with a net value of £290,000, managing all the paperwork and processing the application ourselves as the introducing broker was unable to offer advice or support on regulated products.

    With the result being that our client was able to complete the purchase of their dream property.

    Overview of Case Study

    • Value: £325,000
    • Loan: £290,000
    • Term: 12 months
    • Rate: 1% per month
    • Exit: Sale of existing property

    Additional Information

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      Funding the purchase of a clients’ dream home

      See how our team secured a crucial bridging facility to help our client downsize before selling their property.

      £700,000 Bridging Loan

      Our clients were looking to downsize from their existing home and managed to find their dream property in the process. Since they didn’t want to miss out on this property but hadn’t yet sold their previous home, they needed a bridging loan that allowed them to purchase their new house early.

      Additionally, our clients wanted a further £100,000 loan that would be used to cover a variety of home improvements and Stamp Duty Land Tax. Using both the existing and new properties as security, we provided a £700,000 loan to cover both the value of the new property and the additional loan amount required.

      This loan was provided at a 48% LTV on a 12-month term with a retained interest rate of 0.59%. This bridging loan was organised swiftly to ensure that the client was able to secure the property they wanted without issue which would be repaid upon the sale of their existing property.

      Overview of Case Study

      • Product: Regulated Bridging Finance
      • Value: £700,000
      • Loan: £1,450,000 (both existing property and new property used as security)
      • LTV: 48%
      • Term: 12 Months
      • Rate: 0.59% (Interest Retained)
      • Exit: Sale of existing property

      Quote from the Introducer

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        Repaying an existing development finance facility

        Find out how our team secured a high-value bridging loan for an experienced developer to over a 12-month term.

        £3.7m Bridging Loan

        Our client, an experienced developer, had just finished building 10 holiday lets in Devon. He approached us directly to enquire about a high value bridging loan that was needed to repay his current development finance facility and outstanding loans from his business partner.

        After discussing the situation with the client, Tuscan Capital was selected to help organise this loan. Tuscan were the best fit for our client due to the size of the loan and the promise of the initial development. Working closely together, we agreed upon a 0.85% a month interest rate over a 12-month term, which would be paid back once the client had established revenue streams.

        The client had a strict timescale due to the nature of the development and needed access to the funds as soon as possible. From the point of initial enquiry, a full loan deal was agreed in just eight weeks, and the client was able to fully focus on attracting visitors to the new properties.

        Overview of Case Study

        • Loan – £3,700,000
        • Rate 0.85% per month
        • Term 12 months
        • Exit of Bridging loan – Refi
        • Client is an experienced developer who had finished building 10 holiday lets and needed to repay previous lender and a business partner
        • Lender – Tuscan Capital
        • Direct Client
        • Time from terms being accepted to completion – 8 weeks

        Comment from the client

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          Supporting with legal costs after divorce

          See how Forecast Finance quickly secured a £250,000 bridging loan to help a client cover pressing legal fees.

          £250,000 Bridging Loan

          Our client was looking to sell one of his buy-to-let properties as quickly as possible to cover the legal costs from his divorce. A condition of his divorce stated he needed to remove his ex-wife from the deeds first, so a short-term bridging loan was identified as the correct solution. He was initially referred to us by an Introducer.

          The bridging lender we thought most appropriate offered the client a competitive rate and the ability to complete the transaction within the required time frame of five weeks.

          A loan of £125,000 against his property worth £250,000 was raised, allowing the client to redeem the current lender, cover his existing loan costs, and remove his ex-wife from the deeds. The terms offered were over 12 months, with the interest being retained, meaning the client would not need to service the loan throughout the term period.

          Despite incurring a few delays, including waiting for the necessary, signed documents from the client’s ex-wife, the legal process was smooth, and the client was very pleased with the outcome.

          The Introducer earnt £1,905 from this loan deal.

          Overview of Case Study:

          • Value: £250,000                                            
          • Loan:  £125,000
          • LTV:     50%                                                    
          • Term:   12 Months
          • Rate:   0.89% (Interest Retained)
          • Exit:     Sale
          • Time:   From terms accepted to completion – 2 months

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            Funding the purchase of land in Spain

            We helped secure a £37,003 loan at short notice to allow a client to purchase contested land in Spain for development.

            Second Charge Bridge Loan

            Forecast Finance secured a £37,003 loan on a quick turnaround for a borrower looking to purchase land in Spain which would then be used to develop a holiday let property.

            The borrower needed to raise money for a deposit quickly as they were competing for the land with a cash buyer.

            We contacted our partners at Together Money to organise this loan as we knew they would be able to handle it effectively and time sensitively. Within hours of initial contact, we had agreed the terms of the deal, including a 1.3% per month interest rate over a 12-month term.

            By gathering all the relevant and necessary supporting documents quickly and working closely with the team at Together, we were able to submit the application and ensure the loan process proceeded smoothly. Our contact at Together, James Barnes, responded to all our emails and calls within half an hour over the two days following the submission of the loan application.

            James worked directly with our client to fully understand the case and the exit before releasing the funds just three days after terms were agreed.

            The total time taken from introduction to releasing the funds was six days.

            Steve Arnold, the Introducer who brought the client to us, said:

            “Great to work with Sonia Johnson at Forecast Finance. I referred an urgent 2nd charge Bridging Finance case to Sonia on 22nd Sept and the case completed on the 28th of Sept, exceptional effort and one very happy client, thank you Sonia.”

            Overview of Case Study

            Comments from the client

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