The applicants had exchanged contracts to purchase a leasehold flat in a desirable part of London (SW10 9PN) off-plan from the developer in early 2011 for £500,000.
The applicants had applied to the Woolwich for a mortgage which had been approved in principal but the applicants had not yet received the formal mortgage offer.
A Notice to Complete had been served by the developer with a strict time clause so that if completion did not occur by Friday at 1pm the deposit would be forfeited, and the developer would be free to sell the newly completed flat at a higher value on the open market.
MTF was faced with less than 24 hours in which to complete the transaction as SPF had introduced the opportunity at 3pm on the Thursday afternoon.
The lender had the benefit of an earlier valuation report and knowledge of the local area so was able to issue terms on the same day with an offer of a £420,000 bridging loan based on an open market value of £600,000.
Given the extremely urgent circumstances MTF’s solicitors dropped everything, making immediate contact with the applicant's lawyer to obtain the sale pack.
The pack was fully considered with the Report on Title being delivered to MTF by its solicitor at midnight.
Funds were transferred over to MTF’s solicitors at 9am on Friday morning and then were immediately transmitted directly to the solicitors acting for the developer.
Funds were confirmed as having been received and completion finalised at 12:34pm on the Friday.
With 26 minutes to spare and in less than 24 hours MTF managed not only to save the applicant from losing a £50,000 deposit, but equally loosing £100,000 of profit between the exchange price and today's open market value.
Joshua Elash, Director at MTF, commented: “This case is a perfect example of what sets MTF apart. Our streamlined process and common sense approach to underwriting allows us to be dynamic. We love the opportunity to assist applicants in either saving or making money. This case perfectly involved both.”
Chris Borwick, Associate Director, SPF Short Term Finance added: “MTF delivered yet again with their speed and efficiency.”
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