Voltaire Financial | Property Finance

How Voltaire Bridging Defines Different

19/11/2013 | by Andrew Hosford

Andrew Hosford - Head of Bridging, Voltaire BridgingThe launch of Voltaire Bridging was a well-conceived, natural extension of the Voltaire Financial business. The success of the parent company and the need for our clients to secure short term and alternative finance has grown hugely in the last 18 months.

Throughout that period we have developed relationships with the mainstream bridging lenders in the market, as well as private equity providers, boutique property funds and private family offices. These varied sources of funds enable Voltaire Bridging to tailor funding packages to most precisely suit our clients' requirements.

Relationships

Voltaire Bridging recently closed a deal for a long standing client where it was necessary for us to work with one of our key lender partners to tailor a facility that was not available to the wider market. Our client was under pressure to repay their existing debt of £900,000 to the first charge lender due to that lender's substantial wider market issues. Our client had received full planning to develop the existing site into 9 residential units. However, the client also had an option to purchase some adjacent land subject to planning and this created an opportunity to develop out a larger scheme. Purely as a result of the strength of our relationship with the lender we were able to work together to develop a facility which provided the initial £900,000 required to repay the original lender plus an additional £1.9m available as a War Chest facility thereby allowing the client to act as a cash buyer for further property acquisition opportunities.

Facility

This facility had a variety of facets to it, including:

  • Site loan
  • Generated equity release to the client
  • Rarely available war chest facility
  • Planning angle
  • Interest rate of below 1% per month

I am currently working with a number of boutique lenders to offer funding solutions for a range of slightly different requirements including:

  • Bridge to development product between £2m and £100m
  • Separate war chest facility
  • Large commercial facility up to £100m
  • 2 year commercial facility with no income currently being generated
  • Development finance takeout and a further advance for works during construction
  • Development finance takeout, allowing the client to sell in his own time

Coming up

I endeavour to continue to develop our bespoke product offering over the coming months. One product that I am currently working up is a bridge to development offering. I welcome the fact that some bridging lenders have started to offer development facilities and indeed we regularly make use of these products, albeit most are unable lend on larger loans In excess of £10m. For this reason and others I am working with some more alternative sources of capital that will bridge the purchase of a property or site to allow for a planning gain or adjustment, before flipping the facility into a development loan thereby reducing some of the costs attached including lender arrangement, legal and valuation fees. These alternative sources are able to write loans in excess of £100m.

I strongly believe that it is these types of products what add true value and at the same time make the process of borrowing finance smoother and more efficient for our clients and those of our introducer partners.

If you would like to read more about the Case Study mentioned in this article please visit our Case Studies

 

If you wish to discuss a bridging requirement on your own behalf or on behalf of your client I look forward to hearing from you on 0207 182 1740 or via email at andrew@voltairebridging.com

 

 

© 2015 Voltaire Bridging - "Defining Different"

Voltaire Bridging - a member of the Assocation of Bridging Professionals.