A substantial investment via a complicated set up

Loan Amount:
£11,700,000

Property Value:
£16,380,000

LTV:
72%

A direct client turned to us to make an investment via a complicated setup. They planned to progress with their plans via a tricky company structure. Complicated corporate setups may prove difficult to manage on the high street but fortunately, at MFS, we can accommodate a range of unique circumstances.

On top of working with individual borrowers, we can work with the self-employed, limited companies, SPVs, LLPs, trusts, and offshore companies. But even with this experience behind us, the underwriter on this case had to carefully review this deal, given its uniqueness.

Fortunately, we could see that the borrower’s plans stacked up, and their long-term strategy was sound.

Ensuring a tricky circumstance doesn’t slow down the deal

Given the complexity involved, we ensured the borrower was on top of their existing plans. The original loan was taken out to provide time for the borrower to arrange finance for another project they were undertaking.

Given how substantial the plans were, our underwriter worked with everyone involved to make sure everything was accounted for. The valuer confirmed that the property’s value should grow once the final works were completed.

What’s more, we gathered all the necessary paperwork and reviewed the documentation to confirm that the company structure situation wouldn’t slow down the deal. These assurances, coupled with the borrower’s vast development experience and multiple exit strategies available, allowed us to deliver funding comfortably.

Plenty of conversion potential on the horizon

Renovation and conversion projects are likely to ramp over the coming years. With there being 676,000 potential homes just sitting empty, and office demand plummeting, there may be plenty of opportunity to reinvigorate existing spaces.

Fortunately, we have plenty of tools at our disposal to help with these kinds of plans. Our refinancing loans and development exit finance can help property investors who are coming to the end of their project.

Meanwhile, our permitted & light development bridging loans can be used from everything from basic cosmetic tweaks, through to structural changes. No matter what plans investors may have, we may be able to match them with tailored, flexible finance.