bridging lender revisits £1m deals
Tuesday 20th March 2012
Bringing a sense of renewed positivity to the bridging industry at a time when the mainstream press remains cautious about this type of finance, B&C spoke to MT Finance who revisited a case completed last year to illustrate the client’s very own happy ending, and in addition talk us through another challenging deal they have just completed…
One Happy Ending
In December of 2011, Bridging and Commercial Distributor reported a deal that bridging lender, MT Finance, had completed in a speedy 72 hour period for a whopping £999,000 loan which was secured by way of a first legal charge over a large freehold building in London NW2.
At the time of the deal the SPV borrower, introduced to MTF by Savills Private, was under serious pressure with their existing lender who was aggressively calling in their original mortgage. Consequently the borrowers required a bridging loan from MTF in order to buy time to sell their property at a fair market value. MTF was able to provide the funding fast which gave the borrower the solution they needed.
This March, the borrower successfully sold their property via a local estate agent at its full market value and redeemed the bridging loan. For MTF, this was again another successful loan and a happy client, which just goes to show how essential bridging can be when the right lender and borrower are matched.
Overcoming Hurdles
As non-status lenders, mtf believe that a strong rationale is more important than a good credit history and so, when a client requested a £1,000,000 second charge loan secured over a residential flat with a nine-year lease term remaining, they were able to find a solution for the client.
Located in Portland Place in London, and introduced directly to mtf by a large private bank in Central London, the flat’s unusually short lease, coupled with the subordinated nature of the security made it, and the transaction, unconventional.
Tomer Aboody, a Director of MT Finance and Head of Business Development, commented: “This case perfectly demonstrates how our internal expertise and experience in real estate adds real value to the underwriting process.
“We understand and are comfortable with the nature and value of a short lease. Equally we were delighted that the private bank reached out directly to mtf for its client reflecting our first-class reputation in the market for delivering reliable, transparent and institutional finance.”