MFS provides £3m bridging loan to help client overcome planning delays

Market Financial Solutions (MFS) has completed a £3m bridging loan within three days to refinance a manor house in Kent.

The client — a seasoned property developer — purchased the property to convert it into multiple apartments.

However, when the planning application was delayed by Kent County Council, the borrower needed to refinance the property to ensure they could fund the renovation works beyond the initial deadline.

The bridging facility was arranged at 60% LTV on a 12-month loan and is expected to be paid off with development finance.

Paresh Raja, CEO at MFS (pictured above), said: “As lockdown measures are slowly eased and with the stamp duty holiday extended, property investors and developers are clearly optimistic about the future. 

“For this reason, MFS has been inundated with enquiries from residential and commercial property developers seeking large loans for complex cases.”

He explained that the lender was also seeing a lot of investment activity taking place outside of the capital as a result of the lockdowns.

“Businesses are now more willing to adopt flexible working practices, in turn compelling many people to relocate outside of London where the cost of living is more affordable, or they can enjoy more spacious properties and greener surroundings. 

“MFS is prepared for this shift and is ready to take on cases both in and outside of London as the country transitions out of lockdown.”

This is the latest in a series of deals MFS has completed since relocating to its new office in Mayfair, London. 

The finance provider recently issued a £2.9m commercial bridging loan to support the acquisition of a commercial office building in Surrey.

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