Tight Deadline For Structured Property Finance Acquisition In Essex From Specialist Lender

Area
Essex
Capital Raised
£1.8M

The Scenario

This was a situation that presented a very challenging deadline for even the most agile of specialist lenders.

The client had already exchanged contracts on the purchase of commercial / light industrial site for redevelopment. The client had directly approached three other lenders who had expressed interest in funding the acquisition (and payment of the VAT), but negotiations had become protracted and ultimately they had pulled out.

By the time the proposal was taken to the structured property finance team of the fourth lender it was already the second week of December, with completion set for 7th January.

The Solution

Mindful of the upcoming Christmas break, the lender met directly with the client within 24 hours to investigate the strength of the client’s property portfolio.

They had recently completed a residential development of nine houses: three had been sold, the remaining six were under offer but unlikely to complete in time for the beginning of January deadline.

The lender proposed taking a charge over the six “under offer” houses, plus a comfort charge over the site being purchased. The lender was willing to proceed without a valuation or due diligence, and with title insurance on the six houses, in order to speed the process.

Valuations and due diligence proceeded over the Christmas period. The client managed to push back completion on the development site to the end of January, but meanwhile three of the six houses exchanged contracts and completed. The lenders revised their security package to the three remaining houses, plus the charge on the development site, plus charges on three further unencumbered development sites.

A complicated case in terms of the timescale, and the changes to the loan offer and securities, but the entrepreneurial approach of the lender allowed the deal to proceed.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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