The specialist lender was approached by a new broker on behalf of a client who required funds urgently to clear an existing debt on a prime central London investment property.
The property had a market value of £8.7m, was listed for sale and – at the time of the enquiry – was attracting strong interest from potential buyers.
Due to the client living overseas, raising finance through traditional methods was proving to be difficult.
The client’s current facility was close to being called in and only a very quick completion on the London property would allow them to avoid being penalised and charged for late repayment.
MFS instructed a valuer to complete a report on the investment within 24 hours and simultaneously the lender’s solicitors were engaged to start the legal process.
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This allowed MFS to issue a loan to the client of £5.2m at 60% LTV with the agreed exit being the sale of the security property.
Paresh Raja, CEO at MFS (pictured above), said that international high-net-worth clients were increasingly looking to bridging finance to overcome their frustrations when dealing with traditional lenders.
“As a bridging loan provider that regularly works with international high-net-worths – and brokers who have such clients – MFS understands the unique challenges facing foreign investors within the UK property market.
“This recent case highlights this point.
“For foreign buyers – who are evidently still keen to pursue bricks-and-mortar opportunities in the UK – it is vital that brokers and lenders take a bespoke approach to delivering short-term finance.
“Due to the unique challenges they face and investment portfolios they hold, international high-net-worths require a tailored approach when it comes to securing credit, and this is what sets bridging apart from mortgages.”