Gross Loan Amount:
£2,500,000
Property Value:
£5,000,000
LTV:
70%
Initial Circumstance
We were presented with a case from a new broker at a firm that we already have great relationships with. The broker had not worked with us before but was recommended to approach us when the initial lender pulled out of the market, and therefore this deal, during lockdown.
The broker had a client who had found themselves in a complex situation regarding a purchase that they were looking to convert into buy-to-let residences.
Unfortunately, during the conversion, a protected species of bat was found in the property which immediately halted works. On top of this, Covid also halted progression on a solution which meant that the existing finance was rapidly coming to the end of term with no replacement.
MFS Solution
As we are a bespoke lender, we were able to look at the whole situation. This allowed us to realise that the deal was sound, it was just the timing that had led to these complex, and time constrained circumstances.
Our underwriters and senior team worked quickly to restructure the finance so that there would be no further adverse effect on the borrower. We got our valuers out the next day, which is very much becoming standard practice for us, to support our motto of ‘when we say yes, we mean yes’. A 2nd charge was placed on an existing property to make sure the borrower had what they needed, and did not have to worry about finding additional capital elsewhere, as well as taking this bridging loan.
The Benefits
As we have experienced underwriters, we are able to work towards solutions for complex circumstances such as these. We also pride ourselves on being able to act with empathy and see the bigger picture which is exactly what we did here to make sure that no extra undue stress was put on the borrower – who had already been let down once.
The broker also helped us to feel comfortable, by being on top of all our correspondence and information requests.
We are very pleased that we were able to get this deal processed, and the client can now focus on working towards the sale of the buy-to-let properties, which is their planned exit strategy.
Further reading:
- Featured Product: Complex Bridging Loans
- Explainer Video: Complex Bridging Loans
- Tool: Bridging Loan Calculator
- Guide: A guide to conversion, refurbishment and renovation
- Blog: How much will you spend on property renovation costs?
- Blog: Buy-to-let urban vs. rural: How can landlords choose between the two?
