UKPF Rescues Client From Lender Deadline
Clients often have challenging deadlines in some 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 made the property already wind and water tight. Unfortunately, due to the length of the task at hand he had overrun on the loan term agreed and consequently found the site being reposed by the bridging / 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 lenders 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 the site 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 UKPF following a recommendation from a fellow developer. Understanding the depth of the issue over a lengthy conversation with a UKPF Advisor highlighted the lack of equity in the project. Additional security was required to enable the buy back and complete the remaining works. Family can always be relied upon to send in the cavalry when the going gets tough; The clients sister managed to offer a life line with her residential home as security regardless of having a mortgage already against the property.
Grit and determination certainly paid off when UKPF could obtain 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 in toe 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 had the charge released from her property and had a welcome financial bonus for her trouble.
The complexity of this case and the time scales baring 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.