I was recently contacted by a client who owned a freehold building in Birmingham, which consisted of three retail units on the ground floor, each with flats above.
My client’s existing lender had stopped lending so was no longer renewing expired loans. Because of this, my client was offered a £30,000 ‘haircut’ (the difference between the market value of the asset and the amount of the loan, reflecting the lender’s perceived risk of loss) on the amount he owed, but on one condition – the loan had to be repaid before the end of the month.
Initially, my client had a loan agreed in principle and the lender had already instructed their valuer (which turned out to be at the client’s expense). However, after the Brexit result of the EU Referendum, decided to pull the offer.
Despite this, we were able to provide the client with alternative finance terms within just 24 hours. The lender visited my client at the premises within 48 hours in order to complete all the paperwork, and in doing so, the lender also agreed to use the valuation instructed by the other lender – rather than requiring an additional valuation. If that wasn’t all, the solicitors were then instructed within a further 24 hours, and the completion of the loan was agreed just 48 hours after that.
This case is an excellent example of the hands-on approach we take in ensuring speed and efficiency at all times. The way in which my client’s situation was handled, meant that both we and the lender were working far outside of normal office hours to obtain the best solution.
Understandably, the client was extremely happy with the extremely speedy success of the service he received, and could rest easy that the offer was complete and his loan cleared from the previous lender.