MFS deploys £3m bridging loan to overcome planning delays
Market Financial Solutions (MFS) has arranged a £3m bridging loan within three working days to refinance a manor house in Kent.
The client, a seasoned property developer who had successfully delivered similar projects in the past, had purchased the property and was in the process of converting it into a number of apartments.
When the planning application was delayed by the council, the client needed to refinance the property to ensure they could fund the renovation works beyond the initial deadline.
The £3 million bridging loan, which MFS delivered at 60% loan-to-value (LTV), will be paid off with development finance.
MFS also recently issued a £2.9m commercial bridging loan to support the acquisition of a commercial office building in Surrey.
Paresh Raja, CEO of MFS, said: “The property market is alive and kicking.
“As lockdown measures are slowly eased and with the stamp duty holiday extended, property investors and developers are clearly optimistic about the future.
“For this reason, MFS has been inundated with enquiries from residential and commercial property developers seeking large loans for complex cases.
“Importantly, we are seeing a lot of investment activity now taking place outside the capital.
“This is a direct consequence of the COVID-19 lockdowns – businesses are now more willing to adopt flexible working practices, in turn compelling many people to relocate outside of London where the cost of living is more affordable or they can enjoy more spacious properties and greener surroundings.
“MFS is prepared for this shift and is ready to take on cases both in and outside of London as the country transitions out of lockdown.”