Time is of the essence before repossession!
A potential client contacted us to enquire about refinancing her almost completed apartment refurbishment. She explained that she had gone into default with the existing lender but was not expecting the redemption figure to be significantly higher than originally borrowed. Unfortunately, the client had had some health issues during the term of the existing facility which had resulted in the refurbishment not being finished on time and also running out of funds to get the refurb finished.
We looked at refinancing for her and obtained all the required information and also asked the client to get a redemption figure from the existing lender. The client came back to us with a redemption figure considerably higher than expected due to the amount of default costs charged. Based upon the information we had we knew it would be very difficult to refinance with the existing asset alone so we had to reconsider the whole proposal.
We used one of the client’s other properties, on a second charge basis, to give additional security for the deal and RFL also negotiated with the clients existing lender to reduce some of their default costs at great relief to the client. Therefore, the client was able to secure the funds to repay the existing facility and provide the funds to finish the project. We went from having a very stressed client facing repossession to one with a much better outlook with the funds to complete the refurbishment and time to sell once finished.
At RFL, we have many lenders on our panel that specialise in different specialties so fortunately we knew we could trust our chosen lender to act rapidly to complete this deal for our client. If your deal is near default and don’t want to risk going into default, contact us today!
Also if you are a lender who would like to appear on our panel, let us know!