Money

Bridging lender completes its largest ever loan




Hope Capital has completed a £4.5m bridging loan, the largest since it launched in 2011.

The deal comes after Hope saw its lending grow by 50% during the first half of 2016 and surpasses its previous record loan of £3.9m for a student residential scheme. 

Hope were introduced to the client who was coming to the end of a loan facility and needed to refinance quickly to avoid any large penalties.

The borrower was also looking to gain additional funds to provide working capital for a new business he had set up and the proposed security was a trading golf course with significant leisure and tourism development potential. 

“After the broker had tried several sources, all of whom declined the proposal due to the security, we took on the case due to our experience and knowledge in more quirky and unusual deals,” said Jonathan Sealey, CEO of Hope Capital.

The client was seeking a total facility of around £4.85m, which would have repaid the existing loan, further loans secured on the property and allowed the client to buy out an existing private investor.

After a valuation, Hope offered a loan of £4.5m, which meant he was able to achieve his objectives.

The deal was made complicated by some due diligence problems such as several leases and unregistered land, but the valuer ensured his report was delivered quickly and the valuation was concluded within seven days.

“This case highlights the benefits of our service proposition and how we continue to look at the individual circumstances of the client and their portfolio,” Jonathan added.

“This approach allowed us to achieve a positive outcome for the client who was able to repay his private investors, provide capital for his new business venture and repay his existing loan on time, without incurring any punitive fees. 

“With the additional security the borrower offered, we were more than comfortable with this size of loan due to the reduced overall loan-to-value.”

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