I recently arranged alternative finance for a retail space on an incredibly tight timeframe.
I was contacted by a client who owned the freehold of a building in Birmingham. It consisted of three retail units on the ground floor, each with flats above.
My client’s existing lender had stopped lending, so was no longer renewing expired loans. Because of this, my client was offered a £30,000 ‘haircut’ (the difference between the market value of the asset and the amount of the loan, reflecting the lender’s perceived risk of loss) on the amount he owed, but on one condition – the loan had to be repaid before the end of the month.
Initially, my client had a loan agreed in principle and the lender had already arranged a valuation (which turned out to be at the client’s expense). However, after the result of the EU referendum, the lender decided to pull the offer.
Despite this, we were able to provide the client with alternative finance terms within just 24 hours. The lender visited my client at the premises within 48 hours in order to complete all the paperwork, and in doing so, the lender also agreed to accept the valuation arranged by the other lender (rather than requiring an additional valuation). The solicitors were then instructed the next day, and the completion of the loan took place just 48 hours after that.
This case is an excellent example of the hands-on approach we take, ensuring speed and efficiency at all times. The way in which my client’s situation was handled meant that both we and the lender were working far outside of normal office hours to obtain the best solution.
Understandably, the client was extremely happy with the service he received, and could rest easy now that financing was in place and his previous loan cleared.