How do our fee’s compare to a bridging loan you are probably also considering at 1.19% per month?
ABC Building bought a run down house sitting in a big plot. They renovated the existing house then sold if off to recoup most of their outlay. ABC Building have now got planning on the retained land for 4 additional houses. These houses will sell for £300,000 each, costing £150,000 per house including warranties, utilities, roadways, fee’s etc. Giving the site a Gross development value of £1,200,000.
ABC Building are seeking to borrow £600,000 to finance the development as they don’t have their own funds. They have seen the offer of bridging finance at only 1.19% per month but how much does it really cost?