A semi-commercial property in Newham, presented a lucrative investment opportunity due to its prime London location. The borrower sought to capitalise on this potential, but structuring the deal to maximise returns required a strategic approach from our National Account Manager, David Weir.

The loan was structured at 70% LTV; however, the borrower leveraged the property’s value at the point of completion which allowed us to fund 100% of the approximately £3.8 million purchase price. This was only possible as we were willing to lend against the properties projected value which would be enhanced by the title split, executed at the point of completion. This allowed the borrower to immediately enhance the property’s market value and fund the the deal with a sole security. Because the deal was structured this way on a 12-month term, the borrower could take time to secure refinancing on the property without the risk of an impending second charge on another property.

During the underwriting process for a deal of this size, streamlined procedures are imperative for both parties, ensuring speed on the part of the lender and making the process as easy as possible for both the broker and the borrower. That is why, in this case, we utilised DocuSign to ensure all documents were conveniently accessible in one place, and full title insurance to help the borrower save on legal costs and achieve a quicker completion. Our Senior Underwriter, Andrew Bate, worked closely with MSB Solicitors, who played a pivotal role in facilitating the transaction. This deal, brought to David by Stephen Gallagher from Futurity Finance, was significant as it was the first time they had structured a deal together. However, through their close collaboration, they ensured the borrower had complete trust in our team’s ability to execute the deal efficiently.