Clearing adverse credit and redeeming existing finance through refinancing semi commercial assets

Large loan to cover an impressive country manor and surrounding properties



Gross Loan Amount:


Property Value:


Initial Circumstances

A new broker contacted us after reading about our services online. They had a client who was looking to refinance two semi-commercial assets and brought them to use due to our expertise in complex circumstances.

Both properties had existing finances secured against them in the forms of 1st and 2nd charges. The client was looking to raise enough funds to clear these loans, by raising additional funds against their main residence in Central London.

The client was looking to proceed using a bridging finance not only to ensure they met their tight refinancing deadline of 2 weeks, but because they also had adverse credit which they were looking to clear.

Here at MFS, we look at the bigger picture. After taking both the applicant and their asset into consideration on their own merit, we were more than happy to assist the broker and their client.

MFS Solutions

Unlike other lenders, our team underwrite from the first day. As we do not provide 3rd charge loans, it was important that the team cleared these additional charges initially.

First and foremost, we had the properties valued. Unfortunately, upon receiving the valuation report, we discovered one of the properties came back undervalued.  This was due to the commercial unit having been previously emptied of all commercial elements, such as shelving etc. This left only a bare commercial shell.

However, the broker’s client mentioned that the undervalued property had received potential interest from a commercial tenant. We were able to contact the client solicitor to arrange a draft lease agreement. This would help increase the value of property due to the reduced risk. The lease was then put in place before completion

The client was also looking to raise additional finance to clear adverse credit. By looking at their potential assets, we were able to provide a 2nd charge loan against their home of residency to raise the necessary funds.

Once all elements were in place, we were able to release the funds in time to reach the clients refinance deadline. Due to the size of the property, the client had several options available in terms of exiting the bridging loan.

A strong potential exit involved splitting the upstairs residential dwelling into individual units. This would help open the broker’s client to a wider sellers’ market, and potentially increase their capital yield.

The Benefits

Communication between the different parties was key in this case. The dedicated BDM and underwriter worked closely with the broker and the solicitors to deliver the best solution possible.

By raising additional funds, we were able to refinance the commercial assets and clear the client’s adverse credit. Unlike other lenders, we were able to provide a larger loan at a high LTV quickly, to facilitate the complexity and needs of the borrower.

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