Textbook win/win in Montello £1.4m bridge

Textbook win/win in Montello £1.4m bridge




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London-based bridging lender Montello was recently approached by Andrew Hosford from Voltaire Financial to provide a £1.4 million bridging loan to facilitate the purchase of an office building, with planning consent for conversion to a 100 bedroom Premier Inn Hotel.

The developer was intending to purchase the property with 100 per cent  investor equity and no bank debt, though there was a delay in the drawdown of some of the investor funds just prior to completion. He agreed on the option to purchase the property subject to planning. Permission was then granted with five days remaining until the option to purchase would expire.

The developer knew that the vendor would want an additional premium if the deal was not completed before the option expired. As the equity was delayed, a bridge was going to be the best solution.

Andrew Hosford, a real estate finance broker at Voltaire, said: “This case was one which required a flexible lender who was prepared to consider the whole proposition, and could understand the intricacies of the deal. I knew that Montello would have a fast and pragmatic approach to getting the deal done, as opposed to the stock answers you often get from some lenders.”

Ian Thomas, Director of Property at Montello, said: ‘This case was quite complicated and required a lot of work to complete within the tight timescales. However, the developer had a very strong track record and we could evidence the investor equity and reasons for the delay. We were able to have the property valued, all legal work completed, and funds advanced to the vendor within five days.’

The lender’s Managing Director, Christian Faes, added: “This was a very good loan for us, and the borrower repaid within six weeks of it being advanced. This was a textbook ‘win/win’ situation being achieved for a borrower using bridging finance.

“The deal demonstrates Montello’s flexible approach to lending and our ability to consider all cases on their merits. We are not constrained by tight lending criteria – if the loan makes sense, then we can react quickly and work to the required timescales to get the deal done.”

 

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