A bridging finance company has announced that it recently completed a £1.25 million bridging loan, saving the borrower from losing his property portfolio in foreclosure.

Montello Private Finance, a London-based real estate lender, said that the borrower had come into financial difficulty, and the existing lender was in the process of foreclosing on the properties. A receiver had been appointed and the properties, all based in North London, were set to be auctioned-off.

However Montello arranged a facility for the borrower, which allowed him to pay out his existing lender, and the receiver’s rapidly increasing fees.

Christian Faes, Managing Director at Montello, said: “Montello are not lenders of last resort, but we are able to provide fast and flexible short term finance when the situation presents a viable lending opportunity.”

In this particular transaction, the bridging loan was a closed bridge as the borrower had a secure exit for the loan – a refinance with another bank. The refinancing bank’s credit committee had approved the refinance, but was dragging its feet with documentation.

“The loan presented a solid bridging finance case,” continued Mr Faes.

“The borrower’s existing banker was frustrated with the delay, but more likely, saw that there was significant equity in the portfolio and it could be sold off quickly and easily,” he added.