Market Financial Solutions (MFS) delivered a £3 million bridging loan to an overseas client after another lender withdrew at the last minute.
A returning broker, Dave Fathers from Finspace, reached out to MFS for an offshore client requiring a bridging facility for a residential property in London. The client had intended to purchase the asset through another lender, who then pulled out once they learned the borrower was a PEP (Political Exposed Person), leaving the buyer stranded without finance as the deal was about the close.
MFS established that the client was looking to purchase the property through a company that consisted of multiple directors, all of whom were in different countries. This added complications to the time constraints of the case. Therefore, MFS’ BDM coordinated legal advice from multiple experts, helping to work through all the complexities of the case and the borrowers involved.
The lender was also quick to arrange a new valuation of the London property because the previous lender’s valuation report had lapsed. The same valuer was used as MFS already had a pre-existing relationship with them – a new report was drawn up within two days.
The first-charge loan totalled £3 million at an LTV of 70%, with a provisional exit strategy through long-term refinancing. The loan was drawn down and the client was able to complete within the required timeframe, ensuring they did not lose the property investment or their deposit.
Paresh Raja, CEO of MFS, said: “It’s hard to put a value on experience in the bridging sector, but this case shows just how important it is. Our 15 years’ experience as a specialist lender, enabled us to overcome all these challenges quickly. This is down to our skills, expertise and contacts that complex deals such as thse require, and that other lenders may not have.
“Stepping in where other lenders have let a borrower down has become commonplace in recent years. At MFS, we’re proud of our ‘can do’ approach to lending, and we were delighted to issue the loan within the required time to ensure the best possible outcome for the broker and their client.”
Dave Fathers, Director of Finspace, said: “I enjoy working with complex overseas structures and this case was a good example. It was great working with MFS and when they were presented with a clear and accurate appraisal, the team quickly got to grips with the case complexities and provided terms with lawyers getting instructed on the same day. The asset is a beautiful piece of security for the lender and I’m really glad they were able to pick the case up swiftly with completion being achieved in line with the clients requirements.”