UK Property Finance Rescues Client From Lender Deadline

Clients often have challenging deadlines in unusual locations, and this case is no exception. In recent years, we have dealt with some fairly unique properties, but an old telephone exchange is certainly a first. On a wind-swept hill in Buxton, Derbyshire, our client was nearing completion, having already made the property wind- and water-tight. Unfortunately, due to the length of the task at hand, he had overrun the loan term agreed upon and consequently found the site being reposed by the bridging and development lender. Alarm bells certainly began to ring for the eager investor as the receiver was looking for an early auction sale to recoup the current lender’s loan. Our plucky investor felt this project could continue if he could get a resolution through UK Property Finance. The odds were greatly out of favour, and his good credit history faced being decimated because the loan had been given a personal guarantee for repayment. If it became public knowledge that this was now a repossession, the prospective profit gained would be eradicated by the achieved sale price and mounting costs.

The anxious investor knew where to turn with a phone call to UK Property Finance following a recommendation from a fellow developer. Understanding the depth of the issue over a lengthy conversation with our advisor highlighted the lack of equity in the project. Additional security was required to enable the buyback and complete the remaining work. Family can always be relied upon to send in the cavalry when the going gets tough. The clients’ sister managed to offer a lifeline with her residential home as security regardless of having a mortgage already against the property.

Grit and determination certainly paid off when we obtained a finance agreement in both names to repay the current bridging loan with a bridging loan secured via a first charge across the development site and a second charge on his sisters’ property. In dramatic fashion, the client managed to halt the auction, going ahead with the funds to complete the project. The pressure has subsided, meaning the client could focus on completing the project to maximise profits. His sister not only got to help her sibling in desperate times but also had the charge released from her property and a welcome financial bonus for her trouble.

The complexity of this case and the time scales bearing down meant UK Property Finance had to strategically and carefully select the ideal lender for this case. A fantastic result for everyone involved, and the investor lives to fight another day.