Spring Finance completes urgent £1.7m bridging loan
05 January 2023
Spring Finance and Finspace have worked together to complete a £1.7m regulated bridging loan to facilitate the purchase of a “dream home” for the borrower. The borrower had negotiated an off-market purchase on the basis of being able to complete speedily, and a bridging loan was considered the most suitable solution to satisfy their funding requirements.
The security package and exit strategy for the loan were not straightforward. The security package comprised a combination of first and second charges against various residential and investment properties, including some owned by other family members. The exit strategy involved multiple possible options, such as the sale and refinancing of security properties, or the sale of shares in a company.
Given the complexities identified on initial introduction by Finspace, the Spring team suggested that a meeting be held involving the broker, borrower and lender to ensure that requirements were correctly understood from the outset between all parties. Thereafter, terms were approved and the case moved swiftly to valuation and legals to meet the short completion timeframe.
Gavin Diamond, Chief Executive Officer at Spring Finance said: “This was a challenging case in so many ways, complicated further by the tight funding deadline. Notwithstanding this, it was a pleasure to work with Liam and the wider Finspace team. They had a thorough understanding and appreciation of the requirements of both lender and borrower which facilitated a smooth transaction despite the obvious obstacles. The considerable experience in our team enabled us to identify and address the key risks at the outset, using common-sense underwriting to ensure a great outcome for the borrower within their desired timeframe.”
Liam Arnold, Consultant at Finspace said: “The most common reason I hear people say why they love working in bridging finance is that every loan is different. I enjoy the fact each loan requires out of the box thinking and solutions to meet unique requirements. This case was complex with many angles to consider but due to our experience and stringent due diligence I was able to structure the deal in a way that suited the borrower and lender. The experience and knowledge of the team at Spring is fantastic and they are always a pleasure to work with. Once the loan structure was set, no further questions came up later in the process. All was completed in a matter of weeks due to the teams’ hard work and determination to meet the required deadline.”
