Hope finds solution for client with bad credit history

Facility

£1,522,500

Loan Term

6 months

LTV

75%

Issue

The client was looking to refurbish 25 flats in Manchester and needed a loan to repay a £950,000 he already had with another lender, plus a further £400,000 to complete the refurbishment. The client had a bad credit history, including some personal and company CCJs, and was planning to sell the property as his exit strategy.

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Solution

Given that the client has a bad credit history, Hope Capital released £200,000 at day one for the refurbishment works and the remaining £200,000 was withheld and released on receipt of completion of the works. By structuring the loan with staged payments, Hope Capital could monitor the works and ensure that the property is in a saleable position.

Result

During the loan term, further CCJs cropped up, but rather than put up barriers, Hope Capital worked with the broker and client to see if there was justifiable evidence to get them set aside and agreed to withhold some of the refurbishment funds from the loan with an undertaking from the client’s solicitor to repay them should the CCJs not get set aside.

The legals were further complicated by a mishmash of tenancy agreements which the client and client’s solicitor were unaware of including that one of the companies which the ASTs were set up as was actually dissolved before the ASTs were even entered into.

Again we worked with the client to offer a solution that allowed the funds for the refinance and the works were received in order for the client to proceed with the refurbishment and meet his exit strategy within the deadline.

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Wayne Lee

Wayne is responsible for developing new business across the UK. He has worked in financial services for approximately 20 years, is a specialist in mortgage and bridging finance and has handled bridging finance deals from start to finish through private funders throughout his career.

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