MFS and Knight Frank Finance complete £943,000 bridging deal

Market Financial Solutions (MFS) has worked together with Knight Frank Finance to complete a £943,000 bridging loan for the renovation of a spa hotel in north Warwickshire.

The 50% LTV facility provided breathing space so the hotel owner could pay contractors and fund the refurbishment of the spa.

The hotel, which had been trading since the summer of 2021, had increased in value after works were completed on the main residency.

The case presented several difficulties due to the borrowers’ complex company structure — with two clients situated outside the UK — and the property’s Grade-II listed status, which meant that renovation works had to adhere to strict regulations.

MFS also identified a potential problem regarding the legal structure of the lease while handling the case — however, the lender was comfortable with the situation thanks to the strength of the commercial asset and the LTV of the deal.

As the facility was provided at 50% LTV, MFS did not require any additional security.

The client will repay the facility by refinancing through a challenger bank.

Daniella Campbell, mortgage consultant at Knight Frank Finance and the lead on this case, said: “MFS was able to consider all aspects of this case, where the majority of other lenders deemed it high-risk given the complex circumstances in the background. 

“It was able to underwrite and issue credit-backed terms within 24 hours.”

Paresh Raja, CEO at MFS (pictured above), added: “This case brings many of MFS’s strengths to the fore; firstly, our ability to manage complicated cases, as with our experience and skill, we’re able to see the bigger picture and find ways around potential issues. 

“Our communicative approach, keeping all stakeholders up to speed on what’s happening, also avoids any unwanted shocks and surprises.

“It was great to work with the esteemed team at Knight Frank Finance on this particular deal. 

“We were delighted to deliver the commercial loan without any undue delays, meaning the client’s deadlines were met and renovations works on the hotel could continue unhindered.”

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