Case Study: Bridging loan to acquire distressed property portfolio
By Bridging Loan Directory -
Ascot Bridging Finance have delivered a £1.445m gross bridging facility to help secure the purchase of a 24 unit property portfolio in Scotland from a receiver after bankruptcy, the deal was introduced by Specialist Mortgage Group.
Having only recently commenced lending in Scotland, Ascot Bridging Finance showed their reputation for speed and flexibility by issuing terms on the same day and basing their loan amount on the value of the portfolio rather than the purchase price.
In order to provide a net loan amount as close to the purchase price as possible, Ascot Bridging Finance utilised some additional security from the borrower by way of a first legal charge to ensure the purchase could be completed without failure.
A complex case in nature due to the receivership, and with timing being critical, due diligence was swiftly conducted with the underwriting completed on the same day as the receipt of the documents from the broker. Ascot Bridging Finance instructed their solicitor prior to completion of underwriting in order to ensure deadlines could be met from a legal perspective given the total of 24 property titles/securities.
Working closely with all parties, Ascot Bridging Finance worked around the clock to deliver as promised.
Kevin Gibson, pictured, director, Ascot Bridging Finance, said:
“This was a step up for our client in terms of a portfolio purchase. We looked to seek solutions outside of our normal criteria in order to reach amicable decisions that worked for both lender and client. Given the tight timescales we were up against, we worked closely with the borrower to assess the risk throughout in order to make the deal work. Our approach is all about common sense, flexible underwriting and we showed this to get the application completed.”