Due to the differing regulatory environment, property finance in the Channel Islands can require unique lending solutions - thankfully, bridging finance can offer these solutions.
When it comes to developing property, Guernsey can offer lucrative prospects. Yet, difficulties can arise through a lack of regulated lenders.
We were approached by a client owning a large amount of property in Guernsey (1,600 homes).
Our client needed the funding to act on this new acquisition, and capitalise with a new valuable residential property.
The home to be put forward as security was mortgage-free and valued at £3M. In Guernsey, there is restrictive property law regarding ownership, meaning that most properties of this value are passed on through family trusts.
Our client needed a bridging loan for £800K, raised against her current valued property. The funds would then be used to develop the new build (valued at £1-1.5M).
The main issue arose from our client needing a specialist lender. Due to a lack of financial regulation in Guernsey, the pool of lenders is smaller compared to the UK, as UK-regulated lenders (for homeowner borrowing) can’t get involved.
Ultimately, through our connected network of lenders, we were able to get our client a satisfactory and speedy result delivered by our specialist bridging loan brokers.
Whatever you need your next short-term finance loan for, we’ve got you covered. Let our friendly expert team find you the perfect tailor-made solution.
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