The real story behind the £2.5M bridge

The real story behind the £2.5M bridge



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A London-based specialist bridging lender, a packager, a team of lawyers and a valuation company all teamed up last week to bring one client £2.5 million in just 72 hours.

The saga began on a Sunday evening when Chris Fairfax, Managing Director of Positive Lending, received a text message from a broker. Cash was needed, and quickly, so Chris arranged a meeting for first thing on Monday morning.

The broker explained that his client needed the complicated £2.5 million bridging loan to be completed by Thursday, as it was to be used for a large scale commodities trade.

Knowing that time was of the essence, the packager quickly turned to Drawbridge Finance, who initially approved the deal, despite the complexities of the case e.g. that the loan was being secured against not one but six central London properties, all of which would need to be valued separately.

To further complicate the situation, the properties in question were owned jointly by a son and mother, and most were tied up in trust. Yet despite these issues, the valuations commenced, the lawyers began their paperwork, and everyone thought that the rest of the deal would be plain sailing.

But just the next day, the land registry survey revealed that one of the properties had a Woolwich mortgage of £1 million held against it... (The property owners had accidentally written down the wrong property address).

The saga continued, and there were further twists in this case. However, every member of the team rallied to complete the case by Friday.

Mark Posniak, Head of Marketing & Operations, Drawbridge Finance, added: “This was an extremely complex case but it was brought to completion in an unbelievably short timeframe due to the commitment of all involved. Speed and collaboration are key to bridging and this deal is a great example of both.”

Chris Fairfax added that this was a rare case and would not have been possible without the help of a lawyer who was specialized in bridging.

“Bridging loans of this nature are relatively rare but provide a wonderful challenge to both packager and lender. This case was a true collaborative effort and I must thank the entire team at Drawbridge who acted with their usual enthusiasm and diligent professionalism. At Positive Lending, we’ve been working hard to perfect our bridging service for intermediaries and this rapid, seamless completion reflects that,” he said.


 

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