The Client Background
Our returning client had completed construction works on a block of 18 self-contained flats and reached the point of needing to exit the original bridging finance agreement.
To keep their expansion momentum going, they wanted to stretch the borrowing as far as possible to meet two clear goals:
✓ Fully repay the existing bridging loan.
✓ Release equity for future property acquisitions.
Complicating the transaction, the client’s credit profile featured satisfied County Court Judgments (CCJs) within the past six years, a factor that ruled out some lender’s appetite.
The “Positive” Solution
Positive Lending structured a tailored solution via Allica Bank, who not only provided competitive terms, but took a realistic, common-sense view on past credit issues, and showed flexibility towards the flat’s new-build Professional Consultants Certificate (PCC) where other lenders couldn’t.
The Loan
Product: Commercial Investment Mortgage
Lender: Allica Bank
Loan Amount: £1,874,250
Term: 5 year fixed
Repayment: Interest only
Rate: 6%
LTV: 74.67%
By focusing on the quality of the newly completed 18-unit block and its solid rental potential, Allica offered terms that hit the maximum borrowing target while keeping ongoing monthly costs manageable.
The client successfully repaid the short-term finance, locked in favourable terms for the next five years, and released cash from the property to invest in their next project.
Why Choose Positive?
Commercial property cases can become complex when multiple factors come together, from refinancing existing bridging finance and maximising borrowing to historic credit issues and lender requirements around newly completed properties.
Positive Lending works with brokers to understand the full picture and identify lenders with the right appetite for the individual circumstances.
In this case, our knowledge of the commercial lending market helped the broker access a lender who was prepared to take a pragmatic view of the client’s satisfied CCJs and the property’s new-build PCC, while still delivering the borrowing required to support their next investment.