Gross Loan Amounts:
A broker we have previously worked with introduced us to a new client. The client was a property developer in need of a loan to redeem an existing development finance facility.
The borrower’s initial development loan funded the construction of 4 new build flats. Due to the pandemic, the building schedule had been severely delayed. With the initial loan term ending, the borrower felt under pressure to repay their first lender. After looking at the initial circumstances, we knew we would be able to step in to help the developer.
Our BDM, working alongside the underwriter, got to work straight away to find the best solution for the developer’s circumstances.
Using our trusted panel of valuers, we were able to get the properties valued quickly, receiving the valuation report within three days. This meant that we were ready to instruct lawyers straight away upon receiving the green light to proceed from the broker.
We understand that the current circumstances facing some developers is stressful. Whilst the stamp duty holiday has been successful in restoring confidence back in UK property, developers are still facing ongoing delays due to the Coronavirus pandemic. We are in a time when lenders need to be flexible.
In the current market, other bridging lenders will only lend on a 180-day value. Here at MFS, our key concern is providing our client with the best financial solution for them. We have witnessed a steady rise in property value over recent months. Taking this into account, we decided to provide the facility at 75% loan-to-value on the Open Market Value of £8,464,000; providing a bespoke solution that worked for both us and the client.
The developer exit loan provided the borrower with the time they needed to finish their development. It also offered additional time for the client to find buyers for the properties without the pressure of needing to repay the loan immediately.
Our BDM & Underwriters work closely with our brokers to ensure they are kept updated on the progress of their client’s deal. Both the broker and developer were extremely happy with our communication, speed, and bespoke bridging loans, and we look forward to working with them again soon.