What was the situation?
We were recently approached by a high net worth (HNW) client – an Irish citizen residing in Monaco – who wanted to refinance his existing bridging finance loan on his large stately home in Cork, Ireland. He was looking to secure a loan of circa €2.6 million and wanted to remove his existing lender until he had achieved additional income to pay off the loan in full. Although his income had been affected by COVID-19, it was clear to us that once the initial impact of the pandemic was over, he would bounce back to a much stronger financial position with an income that was expected to clear the loan.
What was the issue?
Our client’s options were limited for a few reasons. Firstly, the sheer size of the single unit was an issue – many lenders have a limit of circa £1 million in value for a single unit and this unit was nearly ten times that. Secondly, with this being a truly unique asset with nothing similar in the area, there were no comparables – our client had developed his beautiful stately home to a very high standard. Thirdly, there is a limited number of lenders who are happy to support deals in Ireland. This meant, as opposed to the usual range of 300 plus lenders available to us, we had less than ten we could approach.
What was the process?
We took advantage of our extensive list of lenders and our specialist team sourced a lender sophisticated enough to gain a good understanding of the client’s background and future income. With this being a very technical deal, it required a considerable amount of underwriting based on the individual, rather than pure asset-based lending alone. As such, we carried out a thorough presentation, highlighting the strengths of our client’s case and his available security, which was key for the lender to gain a full, holistic understanding of his circumstances.
By nurturing strong and long-lasting relationships with our trusted network of lenders, it is extremely rare that we are unable to find a solution for our clients – however complex their case. We had confidence in our chosen Jersey-based lender – with whom we had completed on multiple successful quirky deals in the past – and so we knew this case would be of interest to them if we could provide sufficient comfort.
We worked tirelessly with the lender to structure the deal in a way that worked for both parties and ensured communication was seamless and of the highest standard throughout the entire process.
What was the solution?
As a result, we secured exactly what our client required. Although it took time, our fierce commitment to ensuring all parties were happy with the arrangement allowed us to reduce the rate the existing lender had previously given and secure a longer term at 18 months, which gave us the flexibility we needed.
Due to the structure of the loan, we are now maintaining regular contact with our client and the lender. Working as a team in this way, we can ensure this will be a smooth transaction. Our client is thoroughly relieved and thrilled with the result we secured for him, as it has successfully granted him the time he needed to pay back the loan.
Lending solutions with LDN Finance
Are you looking to refinance an existing bridging loan for a high value property? At LDN Finance, our award-winning brokers have a wealth of experience in securing short-term finance, never shying away from “quirky” and unique cases. We work closely with our trusted network of private banks and specialist lenders to arrange bespoke funding solutions to suit your circumstances at competitive, market-leading rates.
Get in touch with us to organise an initial consultation.