Buying a property portfolio situated in East London

Case Study May property portfolio

Gross Loan Amount:

£2,450,000

Property Value:

£3,300,000

LTV:

75%

Initial Circumstances

A returning borrower sent us an enquiry regarding potential funding for the purchase of multiple assets. The property investor had been offered a well-valued deal for the property portfolio. The client needed an urgent bridging loan to complete as they were receiving pressure from the seller.

 

MFS Solutions

During the valuation stage, we were informed that whilst most of the properties were in decent and workable condition, two of the assets had been flagged as needing additional works. There was also potential concern regarding the planning for these properties. The underwriter assigned to the case knew they had to find a solution that suited the borrowers needs but also aligned with our loan conditions.

We were able to take a commercial view on the situation, working with the client to find a solution. The client’s solicitor took out indemnity insurance policies to cover the defects on the properties in question. Once we were comfortable with the arrangements, we were able to go ahead with the conditions; confident they could be rectified in the long run.

 

The Benefits

A traditional lender would not lend on these types of issues and some of the works that needed to be carried out, making a mortgage unobtainable until the work was finished.

By finding other solutions we made sure the purchase could happen in full, and the exit strategy was comfortable for us, with the work planning to sort the issues and then long-term finance to take over afterwards.

In this particular case, communication and initiative were the key elements to finding a solution. This was made simple by having just one underwriter working on the case at MFS, as they were aware of all the complexities throughout, and were one point of contact for the client.

 

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