For clients that are in the process of negotiating potential leases with interested parties, the need for lending decisions to be made quickly and efficiently is understandably high, as there is a risk of opportunities being lost if deadlines and agreements can’t be met.
As an experienced short-term property finance provider, Signature understands this requirement better than most and have built a strong reputation for their ability to secure deals quickly, without compromising on an attention to detail that offers clients peace of mind.
It’s this approach to short-term property finance that has seen them achieve record lending year on year, supporting some of the UK’s most prominent developers across a wide range of projects, from residential refurbs to ground-up developments.
Recently, this expertise was utilised by a Glasgow-based developer that wished to raise capital against the current value of a unit so that they could convert it into two smaller units. This was due to ongoing negotiations with two high-profile retailers, both of which had expressed an interest in leasing the new units, with terms having already been outlined and agreed.
To complete the necessary refurbishment in a timely manner, a bridging loan of £303,830 was requested on a standard bridge structure against the property’s £1M+ value. With planning consent already granted, the client was keen to begin the refurbishment and estimated a completion time within three months – a timeframe that both retailers agreed on.
Upon inspection, the property was deemed to be in good condition and located near an affluent and desirable location of predominantly residential properties – it also benefitted from convenient access to the M77 motorway, making it a highly sought after location.
As such, the opportunity’s potential was clear, especially as the units had attracted interest from two of the UK’s most well-known high street retailers on attractive, unexpired lease terms.
There was no reason to delay the deal, and it was important the client had all the time and resources needed to begin the process. This meant conducting a full background and credit check to ensure the client could deliver the project as planned, which once confirmed, allowed Signature to offer the requested amount on a 15-month loan term.
This loan term was considered sufficient time for the client to make property alterations, conclude the final details of both leases, cover the rent-free periods and refinance, which was the agreed exit route.
Signature’s proactivity and commitment to finding a suitable solution allowed the project to commence as planned, laying the foundations for a long-term working relationship with the broker and client too.
Alan Coats, Edinburgh-based Lending Manager for Signature, commented: “This is a perfect example of how our experience and expertise can really benefit our brokers and clients, as we can provide a level of trust and assurance that developers need when trying to oversee a sizeable, time-sensitive project.
“As with every deal, first it’s important to fully understand the client’s vision for the project – ultimately our decision to lend will stem from the scope of an opportunity and the client’s ability to deliver it. On both points, we were impressed with what we saw and so wasted no time in agreeing terms.
“A big motivation in our willingness to go above and beyond for brokers and clients is our desire to establish long-term relationships – we believe a lot of positives can come from building familiarity and trust, which we hope can be realised in this case too.
“As such, I’m confident that this won’t be the last time we work with the broker and their development clients, and I’m excited to see what the future holds for everyone involved.”
Emma Ross of Ross Commercial Finance said: “At every stage of the process, Alan and the rest of the team have been both attentive and professional, leaving no stone unturned in their efforts to support the project and ensure a successful delivery. This commitment has not gone unnoticed and has made the entire process much more enjoyable from our experience.
“With this in mind, I’d like to thank everyone at Signature for their support – I would highly recommend their services to any other developer looking for short-term property finance, delivered on the terms first agreed, with no nasty surprises.”