Working with the broker to find back up options for a difficult case

Loan Amount:
£370,500

Property Value:
£510,000

LTV:
72%

Where separate elements of a building are bought, sold, or utilised through different means it can create issues from an underwriting perspective. A borrower required bridging finance to purchase a freehold, residential asset.

The building was split into a commercial and residential element. The residential portion was let out on a long lease, which would make things tricky for the borrower’s refinance exit strategy.

Our underwriter needed to address this to progress the deal. Fortunately, with thorough analysis of the borrower’s plans, we found a way forward.

Taking extra precautions

The underwriter could see that the broker involved was working with an external lender to organise refinance. But, given the property’s unique situation, it was unlikely that other lenders would treat this as a typical case.

For added security, we worked with the broker to find other lenders who would be willing to work with this case’s complicated setup. Also, we determined that if they couldn’t find a suitable refinance option, the borrower could sell the asset.

To keep on top of the feasibility of this case, the underwriter also scheduled in periodic reviews to monitor the borrower’s progression. With these plans in place, we were able to find a way forward.

We’re happy to hear from those with complex setups

In recent years, it’s become difficult for some borrowers to receive funding as lenders struggled against a complicated economic backdrop. Fortunately, there the mainstream market struggles, the bespoke lending industry is there to offer reprieve.

At MFS, not only are we happy to work with those who have complexities such as tricky freehold/leasehold situations to work through, missed payments, CCJs, bankruptcies and more.

We also offer various interest payment strategies to our applicants, who could be coming to as individuals, SPVs, limited companies, or even via trusts. No matter how unique a deal, we will always try and find a way to offer support.