Refurbishment plans can be difficult to manage, especially for large undertakings. A borrower, amid major refurbishment works, came to us for refinancing. They planned to sell their assets on once the works had been completed, but complications had to be overcome before this could occur.
Jemma Vaja, our underwriter, got to work in assessing the borrower’s background. She worked quickly to attain land registry data to support the deal, while working with valuers and solicitors to keep the ball rolling.
We also had to adapt to shifting potential exit strategies, and ensure our funding worked with an existing charge.
Adapting to shifting plans
Jemma initially faced some difficulties with the borrower’s background checks but this was quickly resolved. Also, as the refurbishment work stretched across multiple properties, we had to organise more than one valuation.
The scale of the works delayed the borrower’s original exit plan. But, by working with us, we managed to provide extra time to complete their refurbishment. This extra time allowed the borrower to create a strategy for selling the property down the line.
With clear exit strategies in sight, along with the strength of the underlying assets and the client’s external resources, we were happy to issue the loan.
Remaining flexible where complications emerge
Refurbishment work can often drag on or face unexpected complications. Where large properties or foreign nationals are thrown into the mix, plans can be ground to a halt.
Fortunately, here at MFS, we regularly work with property investors spread across the world. For over 15 years, we’ve come up against every kind of difficulty possible. For as long as we’ve been providing specialist finance, we’ve adapted to these problems and overcome them.
Bridging finance can provide overseas investors with flexibility, where mainstream lenders may only offer rigidity. To see how we can look beyond your finances and create a clearer picture for your claim, catch up on how we incorporate credit scores into our assessment process.
- Featured Product: Large Bridging Loans
- Explainer Video: Large Bridging Loans
- Tool: Bridging Loan Calculator
- Guide: A Guide to conversion, refurbishment and renovation
- Blog: What are exit strategies? Everything you need to know
- Blog: How to define refurbishment? The ins & outs of upgrading your property