Short term loan for £3.25million London property

THE SCENARIO

I recently helped an existing client with a short term loan as they were struggling to sell their property in the current market. My client’s mortgage term had matured and they needed a solution quickly to avoid repossession.

The property was a £3.25million property in Prime Central London, for which I had arranged the original borrowing facility in January 2015. Her intention was to sell the property and downsize, using cash to purchase a smaller property. However, due to the current challenges of selling large properties in London, she had been unable to sell the home.

Challenges with this case included my client’s income; she was a self-employed interior designer and, as such, her income was insufficient to arrange a conventional mortgage.

Furthermore, the existing lender had threatened repossession so this was a very time sensitive transaction and, given that the client lived in the property, it needed to be a regulated bridge, which not all lenders offer.

Finally, as my client had already had a bridge against the property, even fewer lenders would consider the case, as a re-bridge is deemed higher risk.

Considering these factors, managing my client’s expectations and providing reassurances that the transaction would complete in time was important. It was essential I liaised with the underwriter and solicitor daily to ensure all parties were pulling in the right direction.

OUR SOLUTION

I had recently worked on several cases with a lender who I knew would take a bespoke approach to this case. They’re able to look at the client’s entire circumstances and be more flexible in their solutions.

I managed to secure my client a short term loan over a one year term, at a rate of 0.49% per month.

I was also able to introduce them to a solicitor who I had worked closely with in the past and knew could be relied upon to deliver results in such a tight timeframe.

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