Large loan to cover an impressive country manor and surrounding properties

LTV:

67%

Gross Loan Amount:

£6,300,000

Property Value:

£9,450,000

Initial Circumstances

An existing broker came to us with an enquiry from clients who were looking to raise finance to clear an existing debt against the security asset as well as another debt against an additional asset. The asset was a large country home with 17 bedrooms located in West Sussex. The property also had additional outbuildings located around the main residence, which had planning permission already approved for conversion into holiday lets.

The clients had previously applied for planning permission to convert the property into a hotel, but had changed their mind, instead deciding to separate the building into multiple residential dwellings to maximise their potential property yield. They needed further time for their enhanced residential planning application to be approved.

Knowing we specialise in complex bridging loans, the broker came to us with the case in the knowledge that we would be able to facilitate such a large loan, despite the complex circumstances surrounding the case.

Upon receiving the enquiry, it was clear the clients were experienced landlords who had a strong background with bridging finance and buy-to-let assets. Taking all areas into consideration, we accepted the case and got started on the lending process.

MFS Solutions

One of the biggest complications facing the MFS underwriter was finding a valuer who would be able to conduct a valuation report due to the complex nature of the asset however, due to our extensive panel of valuers, we were able to source a valuer to assist.

Upon receiving the valuation report, we were able to raise the funds needed to clear the finance currently secured against the property. After arranging the funds to refinance the debt against the security asset, we were also able to raise the requested additional finance, meeting the clients’ needs. The borrowers then had time for their planning enhancement application to be approved which would enable them to sell the asset at a higher value.

Unlike other bridging lenders, to ensure our clients received the best value for their asset, we were able to lend against the open market value.

The Benefits

Due to complexity of the asset and time constraints, our underwriter and BDM worked closely with the broker to ensure all elements had been covered, and the correct valuer was sourced.

As a bridging lender, our loans are not restricted by tick-box criteria. Whilst other lenders may not be able to provide funds for such a large loan, and for such a complex case, our expertise in complex circumstances and product flexibility allows us to cater to this rising demand in the market.