Hope Capital has completed a £3.9m loan on a student residential scheme in Stoke on Trent, marking the bridging lender’s biggest loan to date.
The lender recently announced that it was increasing its maximum loan size to £5m, with the ability to increase this further for the right deal.
The loan, taken out for a term of nine months, was completed in five working days. The client required rapid refinance in order to purchase a new property portfolio and would have lost a sizeable deposit if no funding was forthcoming.
The loan was made against a modern five storey purpose-built student halls of residence. The accommodation provides a total of 20 studio rooms and 120 ensuite cluster rooms with communal laundry, a gymnasium, a lounge area and a ground floor retail unit. The accommodation was let for the upcoming academic year of 2016 to 2017, with a total income of £800,000.
Jonathan Sealey (pictured), chief executive officer of Hope Capital, said: “Hope Capital has had a sustained period of growth and we are not only seeing an increase in demand for bridging loans but an increase in our own funds.
“Being 100% privately funded lender that operates on family funds, we have the money available to keep up with this demand. Being able to complete our biggest ever loan, which was just shy of £4m, in just five working days and in the middle of Brexit, is a feat in itself, but highlights Hope Capital’s continued strength and confidence in the market.
“Despite much talk and speculation around short term volatility due to the recent Brexit vote, we are seeing a strong demand from developers and for us to lend increasingly larger amounts of money. As we have a security of funds, we are very much open for business and can therefore continue to boost our loan book.”