< p>Bridging & Commercial  - Case study

Alpha Bridging was able to offer assistance to an older applicant facing immediate credit problems who had been turned away by other lenders...

Although the applicant had a high value unencumbered property, her credit issues, the immediacy of her debts and the need for speed meant that she needed special treatment, which is where ALPHA BRIDGING came to the rescue.

Introduced by an intermediary, a client recently came to Alpha in need of funds to settle several county court judgements and defaults. She had an unencumbered property with a value of approximately £2.7million.

The property was in poor condition and needed specific maintenance jobs to be carried out. Due to inaction (the client was elderly) the local council had issued several judgements and by the time the client came to us they needed to be satisfied within three working days.

Her broker had been unable to find another lender prepared to look beyond the surface. The main reason apart from the judgements against her and her age was her ability to repay the loan.

Within the three days, Alpha was able to package a deal and apply a first charge on the property and release £370,000 to the client with a suitable exit in place through an equity release.  £250,000 was paid directly to local councils, clearing off the CCJ’s and the remainder of the money was used to refurbish and maintain the property.

Once the equity release was complete she was able to pay back the loan and the first legal charge was removed making all parties happy.

Managing Director of Alpha Bridging, Mercedez Binning, commented: “On the face of it, it was understandable why so many lenders turned the case down, but if they had bothered to go beyond the ‘bad news’ headlines of credit problems, age and income, there was a strong business case to be made to help this individual get back on her feet.

“Thanks to the equity she had, we were able not only to save the day by funding the paying off the judgements, but also making sure she had an exit which was fully funded through the equity release scheme.