£2.5m refinance for commercial property development facing delays

£2.5m refinance for commercial property development facing delays

Article by Chris Oatway Co-Chief Executive Officer

What was the situation?

I was approached by my client – an experienced commercial property investor – who was looking to refinance their commercial asset in West London. The application was for the refinance of an office combining two suites into one. At c.4,500 sqft, the clients were looking to raise £2.5m against the property’s worth of £4.2m.

The client wanted to raise the required amount to repay an existing bridging loan which was taken out while they completed the development project, in addition to releasing more capital for new opportunities.

What was the issue?

The application was being assessed by a challenger bank who were suffering with delays in their processing. As such, it took them four months to assess the valuation report. At that point we were under pressure to get the loan completed because the valuation was nearing its expiration date. Not only was the delay a problem because the client’s existing facility was expiring, but also because the valuation was likely to be lower than previously thought because of current market conditions. We wanted to avoid requiring the valuation having to be redone.

What was the process?

By using our relationship with the challenger bank, and speaking to some of our senior contacts there, we were able to stress the time pressures facing the client and as a result, they chose to prioritise the case when possible. When the case went to legal reviews, we also ensured we took control by handling any outstanding legal requirements that required our assistance. By keeping a close eye on the process, we ensured we minimised any wasted time whilst up against it!

What was the solution?

Through our hard work and diligence the refinance completed on the original valuation deadline date. The client managed to repay their existing debt and have some surplus funds for a potential new property purchases.

We successfully secured 75% LTV against the gross development value (GDV) of the commercial property which is unheard of in this market.

Despite the client having frustrations with the lender during the delays, our continuous communication made the client feel confident in our ability to get the application over the line.

Lending solutions with LDN Finance

Are you a property developer looking for a specialist finance loan? Perhaps you’re looking to refinance your existing facility. Perhaps a development or bridging loan?

At LDN Finance, our specialist team has extensive experience in securing short-term finance solutions suited to your circumstances – no matter the complexity. Working closely with our trusted network of private banks and specialist lenders, we’re sure to secure a bespoke arrangement for your project at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.

Need competitive specialist funding?
We can help.

Get your project over the line at market-leading rates with the unrivalled knowledge and network of our development, commercial and bridging finance specialists. Our expert advisers are on hand to find the ideal solution for your next or existing project, no matter the complexity.



Our happy clients

Anthony and his team are model professionals: ultra-responsive, direct and clear in their advice. They have arranged a number of mortgages for our family and are very good at looking at different permutations and scenarios. I could not recommend them more highly.

Mr. J

June 2021

Johnny Martin held our hands through the entire process calmly and professionally. Brilliant service, efficient and swift in response to everything. He made the entire journey uncomplicated even when the bank made it complicated. Highly recommended.

Mr. H

July 2021

LDN Finance were extremely helpful throughout the process of getting my insurance sorted. Although a difficult process, with a number of stakeholders that needed to be contacted, they managed the communication very well. Professional, proactive and very helpful. Would absolutely recommend!

Mr. B

November 2020

Related Case Studies