When the borrower made the initial enquiry, they had 4 business days to complete their purchase transaction. They had been let down by two other bridging finance lenders, and now they were stuck in a very difficult situation.
The borrower in this transaction had entered into a contract to purchase a pub in the West End of London. The contract provided that if completion of the purchase occurred on a particular date (which was 4 days from when they first approached LendInvest), then they would receive a £100,000 discount on the purchase price. The borrower was very keen to obtain the discount, but they were short on the completion funds required.
The purchase price for the property was £945,000; and the gross loan amount required (and advanced) was £708,750. The Loan To Valuation was 75%.
The borrower was a corporate entity, with various shareholders, and no pre-existing relationship with LendInvest nor Montello. Some of the underlying shareholders were based offshore, with the majority shareholder being a trust set up in Gibraltar.
The previous tenant for the premises was a pub, in which the individuals who were the tenants, had entered into bankruptcy. There was an outstanding dispute with HMRC with the previous tenant, and there were various legal issues (concerning potential clawbacks etc) that our solicitors were required to deal with.
The borrower intended to purchase the property, resolve the outstanding legal issues with regards to the previous tenant, and then apply for planning permission to change the property to residential use.
The borrower made the enquiry to LendInvest on a Wednesday afternoon, and the following Monday the loan was advanced, and the borrower completed the purchase of the property. The borrower was also able to obtain the £100,000 discount on the purchase price for the property, providing a very successful result for the borrower.
Four months later, the borrower was able to obtain the change of use for the property, and actually sold the property (repaying the loan).