Challenge: Our clients approached RHL with the ambitious goal of acquiring an ex-care home at auction and converting it into residential units. However, a significant hurdle existed – planning permission for the conversion was yet to be secured. This posed a challenge in obtaining traditional financing for the property.
Solution: Recognising the client’s vision and potential, RHL assessed their overall financial profile. Leveraging our expertise, RHL devised a strategic solution tailored to the unique circumstances. We secured short-term bridging finance for the clients, utilising our existing buy-to-let property as security.
Benefits:
- Auction Advantage: The bridging loan effectively positioned the clients as “cash buyers” at the auction, granting them a competitive edge and increasing their chances of securing the property
- Unlocking Potential: By facilitating the purchase, RHL enabled the clients to pursue their development project and unlock the potential of the ex-care home
- Flexible Adaptation: When unforeseen delays in the planning process threatened the viability of the bridging loan, RHL proactively explored alternative solutions. We successfully arranged a buy-to-let mortgage on the acquired property, seamlessly replacing the bridging loan and ensuring financial continuity
Outcome: RHL’s comprehensive approach and innovative thinking proved instrumental in overcoming the initial financing hurdle and navigating the unexpected delays. Our strategic solutions empowered the clients to secure the property, progress with their development plans, and ultimately achieve their investment goals.
Key Takeaways:
- RHL’s ability to think outside the box and tailor solutions to unique circumstances allows us to unlock opportunities for clients even in complex situations
- Bridging finance can serve as a valuable tool for acquiring properties requiring future development, providing temporary funding flexibility
- RHL’s commitment extends beyond initial solutions, offering ongoing support and adapting strategies as circumstances evolve
By combining our in-depth financial knowledge with a client-centric approach, RHL empowers individuals to navigate complex property transactions and achieve their investment aspirations.