The loan was needed to refinance an existing facility on the clients’ property, while awaiting planning permission on part of the land.
Hope Capital offered a loan of £2.569m against a valuation of £3.4m with a 76% LTV over four months.
The loan was secured on a farmhouse and associated barns with planning permission granted for a residential conversion.
Hope Capital had to take into account the fact that contracts had already been exchanged with a third party for the sale of the farmhouse on which the loan was secured.
The lender also discovered that there was a complex company structure of ownership and background to the client’s proposal.
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The process was on a strict deadline as the borrower had to repay an existing debt or lose a substantial sum of funds that they had already spent on the planning application for the barn conversions.
“The property was held in a UK limited company which was also a sub company of an offshore company,” said Jonathan Sealy, CEO of Hope Capital.
“This meant Hope Capital had to complete due diligence both onshore and offshore.
“In this particular case, speed was of the essence.
“However, being a principal lender meant that we were able to move very quickly.
“We made quick decisions and turnaround times to meet the client’s requirements and deadlines."
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