Completed Deal £1.2m Re-Bridging Loan
We were approached by a prospective client as they had acquired their security in 2007 and had had extensive planning problems and multiple lenders over the subsequent years taking charges resulting in the directors’ private residences being given as security to cover the ultimate losses.
75% of the development had been sold when we picked the deal up and there were sales in the pipeline so our initial thoughts were to negotiate an extension with the current lender (the LTV was already outside their lending parameters) and allow the sales to drop in. This extension was achieved but the sales didn’t happen quickly enough and despite some sales happening there was noise in the background of the possibility of the appointment of a receiver.
It was at this point that we approached one of our lenders who were new to the market and with whom we’d been very impressed with the deals we’d already done with them. They offered terms based upon desktop valuations (there were great comparable sales from the site and the directors’ properties were on the market) to 75% of the OMV. This gave us the opportunity, with the support of a small loan from a private investor we use, to navigate an exit from the existing lender and give the client the much-needed breathing space to sell the remaining units.
We worked very closely with our lender throughout the legal process in what was a complex deal involving many different components and completed the £1.2m re-bridging transaction to the delight of the client.
As you can tell, this deal was definitely not straight forward but the borrower came to the right brokers, who have over 20 years’ experience, which allowed us to save the possible appointing of a receiver.