Every deal is different, and as such, client requirements and expectations will differ based on the unique circumstances of each project. For experienced short-term property finance providers, like Signature, it is vital they adapt their approach to provide the necessary support on suitable terms.
Over the years, this flexibility has helped Signature build a strong reputation as an experienced and reliable provider, boasting an extensive client portfolio that consists of a wide range of established developers and firms.
Their commitment to supporting clients was once again demonstrated after they provided much-needed bridging finance to applicants, allowing them to purchase a residential BTL asset currently owned in their parent’s name.
As part of the deal, the property owners were keen to gift a £100,000 deposit to the applicants which would go towards the £400,000 market value. There were a number of important factors in making this decision, but above all, the parents were keen to support their son and daughter-in-law as a way of thanking them for their assistance during the original purchase.
In order to comply with Signature’s policy, the applicants agreed to contribute a £30,000 deposit, which would be 10% of the true £300,000 cost to them. Of course, this was viewed as a positive outcome for the applicants, especially as Signature were happy to provide 90% of the purchase price at a 75% rate.
Before the deal could be finalised and terms agreed, the necessary background and credit checks were conducted to ensure the proposed exit route could be followed.
Once satisfied, Signature agreed to provide the bridging loan, with a view for the property to be refinanced onto a long-term BTL loan for strong rental yield, acting as the primary source of repayment.
Paul Tromans, Sales Director at Signature Property Finance, commented:
“This particular deal is a great example of Signature’s flexibility and willingness to offer solutions based on the unique circumstances of a project.
“Given the seller’s intention to provide a significant £100,000 deposit to the applicants, the logistics of the deal changed slightly, so it was important that we could adapt our approach and arrange a sensible alternative without delaying the process.
“Thankfully, our experience of helping other clients meant we were able to work quickly to find a feasible outcome, offering 90% of the purchase price at a 75% rate – something that the applicants were more than happy to accept.
“Overall it has been a pleasure to support the client and we wish them the best of luck in their future endeavors.”
The developer added:
“From the outset, the entire experience has been a breath of fresh air, as we have been extremely impressed by the professionalism the Signature team have shown throughout the process.
“In this industry, time is always of the essence, so to have a deal agreed on suitable terms in quick turnaround has been a great relief – it allows us to move on to the next stages without unnecessary delays.
“For this reason, I’d highly recommend Signature’s services to any other developers looking for a short-term finance.”