AREA: Mayfair, London
AMOUNT RAISED: £925,000
PRODUCT USED: Bridging Loan
In the property finance sector, speed and flexibility are often essential. This case study examines how a bridging loan provider swiftly assisted a foreign national in securing a substantial loan for multiple purposes, demonstrating the versatility of bridging finance in complex scenarios.
Client Scenario
The client, a high-net-worth Italian citizen residing in the UK, owned a valuable five-bedroom property in Mayfair, London. The property had several issues that needed addressing:
- A short lease with only 42 years remaining
- An outstanding legal charge against the property title
- The client needed to raise capital quickly to invest in a time-sensitive business opportunity
With traditional lending routes likely to be too slow, the client sought a faster financing solution.
Funding Solution
The bridging loan provider recognised the urgency of the situation and proposed a fast bridging loan tailored to the borrowers needs.
Here are the key details of the loan:
- Loan value: £925,000
- LTV: 35.6%
- Property value: £2,600,000
- Loan term: 9 months
To expedite the process, the lender took several innovative steps:
- They used an automated valuation model (AVM) to quickly assess the property’s value, allowing for a rapid initial fund release of £200,000.
- The remaining funds were released in stages, coinciding with the lease extension process and the settlement of the legal charge.
- The lender worked closely with the client’s solicitors to ensure all legal requirements were met promptly.
Final Outcome
Thanks to the lender’s efficient approach and expertise in handling complex cases, the client achieved multiple objectives:
- The lease on the London property was successfully extended, significantly increasing its value.
- The outstanding legal charge was settled, clearing the property title.
- The client secured the necessary capital to invest in their business opportunity within the required time-frame.
The entire process, from initial enquiry to final funds release, was completed in just 24 days – significantly faster than the industry average for bridging loans.
This case illustrates the effectiveness of bridging finance in addressing multiple, time-sensitive financial needs. By choosing a bridging loan, the client was able to overcome property-related challenges and seize a business opportunity simultaneously. The lender’s ability to act quickly and flexibly, combined with their expertise in handling complex cases involving foreign nationals, proved instrumental in achieving a positive outcome for the client.
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