A full application was quickly received and within hours, both the valuer and lawyers had been instructed, allowing the valuation to be completed by the end of the day.
The deal however fell through when Dragonfly’s lawyers discovered that the lease had been created in such a way that the landlord would not let the leaseholder sub-let the property for more than six months in a year.
On Dragonfly’s advice, the client’s lawyer negotiated with the landlord’s solicitor to circumvent the clause and managed to overcome concerns about the wording of the legal opinion due to the borrower’s offshore status.
Matt Smith, Director at Risk at Dragonfly, said: “To arrange a £1.5m loan in two working days is an achievement in itself, but to do so for an offshore borrower and also bring the deal back from the dead by renegotiating the terms of the lease, was pretty eye-opening by any standards.
“But highly challenging applications like this, when the clock is ticking and an extra layer of due diligence is required, are what bridging is all about and what differentiates it from term loans.
“It was extremely satisfying when the funds were released several hours before the court deadline.”
By the Monday morning, Dragonfly had provided a higher than average risk compliance sign-off and the £1.5m loan was issued to the client.
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