Crystal Specialist Finance secures mortgage for incorrectly valued nursing home

Crystal Specialist Finance (CSF) has secured a £1.7m mortgage for a Surrey-based nursing home and claimed that it was the “most difficult case in company history”.

Five partners purchased the property for £2.4m in November 2016, using a £1.4m bridging loan based on a residential valuation.

However, in addition to the nursing home being incorrectly valued as a residential property two years earlier, a £1m update was needed for the planned new facility.

With exit required in November 2017, the partners’ broker contacted CSF who uncovered the error which ultimately downgraded the property value to £1.7m during reassessment.

The existing lender proposed a further bridge to avoid imminent penalties, which the client accepted.

CSF chased the client in September 2018 to discuss a long-term solution and ultimately secured a £1.7m mortgage with Assetz Capital, using one of the partner's houses as added security.

Jo Breeden, managing director at CSF (pictured above), said: “Valuation problems, three bridging exits, a niche sector for lenders and only one year’s trading accounts, to name but a few issues.

“This case had everything going against it for so many reasons, but we found a solution — this case alone proves the value of a professional specialist distributor.”

Damien Druce, director of intermediaries at Assetz Capital, added: “The deal was in the balance for some time, but all parties remained focused on achieving a positive outcome.

“In essence — and what is ultimately important to a broker — is that we took everything into account, mainly the management and the running of the business, and came to a commercial decision.”

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