Mint gains client for life after funding pub conversion
By Tom BelgerMint Bridging has helped a senior executive of a multinational company with her first venture into property development…
Mint Bridging has helped a senior executive of a multinational company with her first venture into property development.
The client had bought an abandoned pub in Maidstone, Kent for £250,000 at auction, and although she did not having planning permission, the client was confident that she would be able to convert the building into residential premises.
A loan of £175,000 was agreed despite a fall in value in the property, and plans were submitted to convert the property into four flats and a house.
The first phase saw the pub converted into a house which was put on the market, but at this point, the client realised that the full potential of the development was for three houses and two flats.
A revised scheme was delayed at the planning stage, and further changes were requested which added to the ultimate gross development value of the scheme but led to further delays.
On more than one occasion, Mint was asked to extend and renew the loan, which had morphed from a simple six month facility to a longer term partnership.
The client said she was very pleased with the way in which Mint had helped to undertake the development, emphasising the fact that the lender had been extremely supportive throughout the changes.
“I felt that I could approach Mint at any time to discuss my case, and their understanding of what I wanted to achieve, basically meant I had a development partner who was prepared to take the trouble to help me at every stage, rather than simply act as a funder,” said the borrower.
Business Development Manager, Richard King, said Mint believes that building long term relationships is far more important than making a fast buck.
“After initially arranging a standard bridge with interest deducted for a set number of months, we renewed the facility a number of times, allowing the client to service interest at the original rate,” said Richard.
“Sure, we could have played hardball, and imposed heavy extension fees, but as I’ve said before, we partner for the long term.
“We have supported this client for the best part of two years, and helped her reap plentiful rewards from this project, and in return we have a client for life.
Richard pointed out that because Mint is privately funded, there are no third party investors to dictate how it runs its business - so real flexibility can be achieved and delivered.
“This deal demonstrates why brokers and borrowers need to consider the beginning, middle and end of a bridging loan, and not just the headline rates.”
Keywords: mint bridging, broker, bridging finance, medianett, richard king,