Case study

Developer increases profit margins with Below Market Value Bridging Loan


Having secured the winning bid for the acquisition of a new site comprising of 31 2-bedroom retirement flats, Hanover Social Housing LTD’s director Razak Hussain turned to Ultimate Finance to discuss his funding requirements to help him cosmetically update the site before it could be put on the market.

Razak explains, “Through securing a previous Bridging Loan for £1.25m from Ultimate Finance back in 2020 I knew of the excellent service they provide, so I had no hesitation in taking on a new facility with them when my broker Lucy Hope at Bespoq Finance suggested them again”.

Having worked with Lucy and Razak before Regional Director Kay Williams was delighted to have the opportunity to support them on this new project. She tailored a Purchase Bridge facility with the additional benefits of a Below Market Value (BMV) funding proposition. She says, “At Ultimate Finance we know that not all developers share the same ambitions or pain points, which is why we have a suite of residential Bridging Loans we can tailor to fit any of their requirements. To help support Razak, our Purchase Bridge solution provides quick access to the funding needed with rates starting from only 0.89% per month, and the interest can either be retained or serviced for additional flexibility. On top of that, earlier this year we introduced our Below Market Value product, which offers funding up to 100% of the purchase price, and this is an ideal solution for this type of project to help secure as much profit as possible at the point of sale”.

With time being of the essence, Ultimate Finance stood out as the business’ funding partner of choice again thanks to its proven track record, excellent service and a BMV offering unmatched by many high street lenders. Kay adds, “With 20 years’ experience in asset-based lending, we understand the needs of our clients and we know that to provide the support they need we must be able to provide funding in tight timescales. That’s why our Bridging Finance facilities come with a decision in principle within 24 hours and a fully credit backed offer within 72 hours, so that introducers and their clients can have access to the certainty they need to make quick decisions and keep moving”.

With swift access to the funds and a construction team already in place, the developer is now working on completing upgrades to all doors, bathrooms and kitchens before refinancing the property via a commercial mortgage and put the property on the market.

Razak concludes, “It has been great to be able to work with Kay and the team at Ultimate Finance on another development, and I’m certain that they will be my first port of call for any upcoming funding needs in the future. The whole process has been smooth, speedy and efficient, from my first enquiry to receiving the funds”.

Find out more about Ultimate Finance’s range of residential Bridging Loans.

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