Mint honours terms on £975,000 loan despite down valuations

Mint honours terms on £975,000 loan despite down valuations




Mint Bridging has helped a highly experienced property developer and landlord to purchase a new development in south London.

The client was looking to borrow up to 75% against a property he already owned that required work before it could be let out.

However, he also wanted to raise the funds to simultaneously buy another property in the same area of south London that again needed work with the objective that the main loan would potentially be from another lender.

He would then use the money from property one to refurbish property two and upon refurbishment he would then refinance so he could renovate property one with both being houses in multiple occupation that would be refinanced to term.

The client was experienced at turning properties around quickly, so Mint were keen to work with him and offered him a good LTV at reasonable rates.

Mint also suggested that it looked at the project as a whole, so it offered the client the maximum borrowings on both properties as one loan with a competitive rate.

This allowed the developer to start work on both properties immediately.

However, following valuations, concerns were raised when both properties were down valued in the reports.

Mint looked at the case again, but the client’s experience helped the lender to still honour the initial terms and proceed with the loan, despite an even higher LTV.

“When we’re looking at lending, we always also take into account the client’s experience and track record as a rule of thumb,” said Andrew Lazare, managing director of Mint Bridging.

“Knowing the client was skilled in the property market gave us assurance he would be able to deliver the desired result.

“We also never review a portion of a lending process – our goal is to analyse the full picture.

“In this case, the two properties alongside the client’s expertise was an attractive proposition for us to lend to him.”

Mint completed the deal for both properties in just a few weeks and after two months the client had fully converted the first property and let it out, while the second is set to follow shortly. 

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