Key have recently helped a client with bridging finance of £1.2m on a complex deal.We were first introduced to the clients in 2017 at a time when the relationship with their lender was deteriorating. Their property portfolio comprised a mix of commercial, HMO, residential BTL and development assets that at the time had an estimated value of c.£3.7m.
With evidently ample security and a potentially good income stream, we were confident that the loan could be refinanced. However, given the circumstances, this could only be through a specialist lender and terms were received from one of our panel of funders.
The deal moved slowly as some of the properties were being sold and the client did not wish to commit to the refinance until they were certain that the sales were going ahead.
In the end, only 1 of the sales went through and when valuations came in much lower than expected there were further delays as additional security was required. During this period, an LPA Receiver was appointed.
Despite this setback, our lender kept to their commitment and the deal eventually completed, with a LTV of 56%, despite even further delays when the clients had to raise additional finance to meet an unexpected shortfall on the redemption figure!
The deal has ensured that the clients are now back in control of their portfolio and gives them time to arrange an orderly disposal of the properties over the next 12 months.