Our client had a mixed portfolio of commercial, development & residential property assets, and was referred to us by their current bank. Their current bank were no longer able to meet their needs, as the clients pivoted more towards commercial property and property development.

Location : West London & Central London

Loan type : Bridging Finance / Commercial Bridging / Residential Bridging / Jumbo Bridging

Loan size : £3.77m

Loan-to-Value : 65% (net) LTV

The Situation

A mixed portfolio of securities can always be tricky for most banks, as normally the loans should sit in different departments. Our client preferred to deal with one lender for speed and efficiency purposes, but as the required leverage was high the situation required a flexible lender. Personal liquidity was also short, as all available income had been directed towards the mobilisation of a new development of offices in South-West London.

The Challenge

Aside from the high leverage requirement (65% net )everage was high, and our client had historic credit issues which meant several banks we approached had declined to assist. The existing bank was becoming more nervous about their exposure and wanted to exit as soon as possible. One of the assets was a block of offices, owned via a Trust and the other was a a block of 3 flats, owned by an offshore company, both of which added further layers of complexity.

Our job was to paint a picture of the wider situation and that the clients were a good risk.

The Outcome

On the day that the new banks credit committee was due to meet to discuss the case the Head of Credit declined the case and it seemed no amount of persuasion was going to see him budge. A disaster.

However, with the supplenmentary information we were able to provide around the clients future pipeline of property deals, enabled our contact at the bank to gain the support of the owners of the bank, so that decision was overturned. We were able to get credit approval and complete as planned.

The rate we agreed was also exceptionally low for a 12 month bridge at 5.89%.

There are over 200 employees at the London branch of this bank, and we are convinced if we had used any other employee within the bank, then this case would have remained a Decline.

As a business we pride ourselves on not just knowing the right bank but knowing the right person within that bank.