Crystal Specialist Finance completes “most difficult case in company history”


Jo Breeden

Crystal Specialist Finance (CSF) has completed “the most difficult case in company history”, securing a £1.7m mortgage on a new-start Surrey-based nursing home incorrectly valued as residential property two years’ previously.

The five partners purchased the property for £2.4m in November 2016, using a £1.4m bridge based on a residential valuation. However the property was already used as a care home, while the planned new facility required a £1m update to deliver a first-class service for aging patients with acute needs.

With exit required in November 2017, the partners’ broker contacted CSF who uncovered the error which ultimately downgraded the property value to £1.7m during reassessment. The existing lender proposed a further bridge to avoid imminent penalties, which the client accepted.

CSF chased the client in September 2018 to discuss a long-term solution which overcame property value and just one-year’s trading numbers, and ultimately secured a £1.7m mortgage with Assetz Capital based on goodwill and one of the partner’s houses as added security.

Jo Breeden, pictured, Managing Director of CSF, said:

“Valuation problems, three bridging exits, a niche sector for lenders and only one year’s trading accounts, to name but a few issues. This case had everything going against it for so many reasons but we found a solution, this case alone proves the value of a professional specialist distributor.

The professionalism and dedication of Commercial Finance Director, David Parke to chase and secure a long-term financial result for the business highlights our expertise across many areas. We have the knowledge, the wherewithal, the contacts and the drive to find a solution for the most difficult cases imaginable.”

Damien Druce, Director of Intermediaries at Assetz Capital, added:

“The deal was in the balance for some time, but all parties remained focused on achieving a positive outcome.

In essence, and what is ultimately important to a broker, is that we took everything into account, mainly the management and the running of the business, and came to a commercial decision. We are delighted to have been able to help both Crystal, their broker and the borrower when very few other lenders would.”