£2.1m complex refinance brief met by Commercial Expert
Commercial Expert has completed a complex re-financing project to ensure two bridging loans were repaid before additional charges were incurred.
OJ Property & Sourcing Ltd, a long-standing client of the commercial broker’s, had previously borrowed £2,070,000 to fund the refurbishment of a student let property and surrounding car park.
The original deal involved the purchase of a student let property at a value of £2.2m via a bridging loan, with a plan to refinance to repay and a second bridging loan to transform a car park and release cash for refurbishments when students moved out in summer.
The bridging loans were financed by Tuscan Capital and Together Commercial Finance with an agreement to arrange a long-term refinance after six months.
The deal had to be completed within three months of the application and the lender stated that no re-financing application could be made within six months unless refurbishment had been carried out.
Commercial Expert, working with Shawbrook Refinance, prepared an application ready to submit after six months and a day, thus meeting strict time schedules.
The application was submitted and a valuation, based on an investment yield basis, was obtained at £2.9m – around £700,000 more than the original valuation.
The lender, Shawbrook Bank, agreed to lend £2,175,000 (75% LTV) on a five-year fixed rate, which allowed the original bridging loan with Tuscan Capital to be redeemed along with a second bridging loan on the car park with Together.
There was also a significant cash sum remaining for refurbishments and remedial works due to be carried out this summer.
Mike Coates, managing director at Commercial Expert, said the re-financing deal showed the importance of working closely with clients.
“The brief we had from the client was very specific and meant there were strict deadlines that we had to meet at various stages of the process,” he said.
“The re-financing application couldn’t start within six months but then had to be completed within three months to avoid the client facing additional charges from the bridging lenders.
“I am delighted to say we met every deadline and ensured no extra costs were incurred by the client.
“We had a tight but clear brief to work to and we kept in constant touch with the client to ensure we were on top of the process at every stage and followed the project through from start to finish.
“We pride ourselves on building effective long-term relationships with our clients who know they can trust us to deliver on what we promise.”
Commercial Expert is an independent commercial finance broker offering a comprehensive range of business finance to a broad spectrum of clients, each with differing financial requirements.
The completion of this case demonstrates the lengths they go to when securing ethical lending for clients.
