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

By Bridging Loan Directory 26th March 2019

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.”