Masthaven Bridging Finance has joined forces with Platinum Options to complete a £1 million facility on a former bankrupt’s property.
The deal was introduced to Platinum Options’ Specialist Lending Manager, Barry Scott, by Daryl Hyde of The Mortgage Market. Barry approached Masthaven with this and had terms out to the client within an hour.
The client was a mother and daughter team who each own an equestrian facility to run their individual businesses from.
They wanted to purchase a new equestrian facility for them to run their two existing businesses from one site, whilst both living in the house included with the purchase.
The vendor was bankrupt and the sale was dealt with via an administrator.
A loan size of £207,000 was initially discussed but this increased to and completed at £1,062,000, as the mother lost her buyer.
The security used for the deal consisted of three equestrian centres, two with residential houses incorporated, situated in Northamptonshire and Bedfordshire.
The 12-month loan was completed at a rate of 1.25 per cent pcm and the LTV across the total security was facilitated at 51 per cent
Due to the complexity of the case the deal took four months to complete.
Colin Moth, Senior Underwriter at Masthaven Bridging Finance, highlighted some of the complications to B&C: “Purchasing from a bankrupt, the deal comprising of three equestrian facilities, the Council having a charge over the purchase, and the client advising wanted to split the title of one of the sales.
“Finding valuers in the area qualified to appraise the security type was also another hurdle, as was the client’s initial solicitor, who were out of their depth and the replacement solicitor who initially didn’t understand the urgency that bridging finance requires.
“A very complex but interesting case… numerous hurdles to overcome … was worth it in the end as got the required result for all parties concerned.”
Barry Scott added: “What an amazing deal in many ways! Future deals will surely be easier but it just goes to show what a transparent and reliable lender Masthaven is. Masthaven kept me fully informed of the progress at all stages of this very difficult application. The support of the underwriter on this case ensured that the client was able to move into their new home.”
Richard Deacon, Sales and Marketing Director added, Barry and Colin worked as a team to get this loan completed. It had more hurdles in the way than at the Cheltenham Festival, but the desire to complete this loan was evident on both sides of the agreement and just goes to show what real service counts for even if the facility took as long as it did to complete.