Client circumstances:
We were approached by a client looking for £3.2 million. The client had gotten caught up in interest rate swaps which ultimately resulted in defaults on his mortgage. The client’s mortgage lender sought repayment and appointed a Law of Property Act (LPA) receiver who took full control over the property and his tenant’s rental payments. The client owned a mixed residential-commercial property in south London, valued at £4.85 million. However, the property was an unfinished development. The client was part way through flat conversions of the upper parts and when finished the investment property would be worth £7 million –a potential of over £2 million profit for the client.
MT Finance solution:
After reviewing the merits of the case, we were able to provide a £3.2 million short-term loan secured by way of first charge over 10 months.
The benefits:
In just 2 weeks, not only was the client able redeem the existing mortgage, regaining control of his asset, the loan meant the applicant had the money to complete the work on the flats, giving him the opportunity to make himself a significant profit.